Article Date:
October 2007

Word Count:



IRS Audit of Rental Properties

Our rental properties include a condo on a month-to-month lease, a single-family home on a month-to-month lease, and a vacation cabin that’s rented on a one-week basis for 20 weeks a year. We make no personal use of the rentals.


The IRS just examined my three rental activities, disallowed my losses, and charged me $55,000. I need help. The IRS agreed that my wife was a real estate professional. That was a good thing.


The bad thing was that the IRS said she did not materially participate in the rentals because the more than 750 hours shown in her log book includes time that does not count as material participation time. The IRS stated that material participation ... Log in to view full article.

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