Article Date:
July 2021

Word Count:



How the IRS Lost $55,000 in This IRS Rental Properties Audit



I just returned from a very unsatisfactory visit with the IRS. The auditor examined my three rental properties, disallowed my losses, and told me to expect a tax bill for $55,000.


Current score: IRS $55,000 ahead.


One good thing happened, I think. The IRS agreed that my wife is a real estate professional.


The bad thing was that the IRS said my wife did not materially participate in the rentals, because the more than 750 hours shown in her logbook that count to make her a real estate professional include time that does not count as material participation, such as time spent



inspecting, analyzing, choosing, and acquiring property;


reviewing statements, reports, and publications;


preparing summaries;


doing computer analysis;


making visits ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
with a money-back guarantee