Special Report: IRS Intensifies Attack

Special Report: IRS Intensifies Attack
Against Real Estate Professionals by Diane Kennedy, CPA and Tax StrategistIt looks like the IRS has hit pay dirt with their targeted audits of real estate professionals and real estate investors. From the emails and phone calls we've received, the number and voracity of the audits against real estate investors and real estate professionals is increasing.

The term Real Estate Professional, when used by the IRS, has to do with whether you can take advantage of real estate losses against other income on your return. It's been a popular loophole for real estate investors over the past few years. Here's how it works:

If you have real estate losses, you can only take $25,000 of the loss against your other income if you make less than $100,000. If you make more than $150,000, you can't take any of the loss.

That's where the Real Estate Professional status comes in. With this status, you can take all of your losses against your income, no matter how much the loss is and no matter how much your income is. [Get a more detailed explanation here: The Real Estate Professional Tax Loophole] http://www.creonline.com/articles/art-346.html  Thanks !
Curtis D. Harris, BS, CGREA, REB
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