Todd and Pamela Bailey had modified adjusted gross income in excess of $150,000; therefore, one of them had to separately qualify as a real estate professional so they could deduct their rental property losses of $16,822 for the year.

Pamela Bailey managed the properties, so she was the one who had a chance to qualify as a real estate professional. Ms. Bailey had no income from any source other than her rental activities.

The Test

To qualify as a real estate professional, Ms ... Log in to view full article.