Should you or your corporation be unlucky enough to face an IRS audit, there is one record that stands out as critical to your audit health. If you are missing this one record, the IRS audit can quickly expand to other areas of your tax return.

If the passive loss rules are taking away your tax deductions on your real estate rentals, examine the real estate professional rules for an escape. You can be a lawyer, medical doctor, etc., and also qualify as a real estate professional.

You can be a lawyer, CPA, MD, or business owner and qualify as a real estate professional if you or your spouse materially participate in the rentals or in the rental group.

Learn how to qualify for the rental real estate active investor category for deducting rental property losses of up to $25,000. You can plan deductions to lower the $100,000 and $150,000 ceilings.

To deduct your passive losses as a real estate professional, you must prove time spent. Since you need this proof, use these tactics to keep track of your time and also increase your overall profits on the rentals.