The IRS audited Raymond Vandegrift’s tax return, disallowed his rental property passive losses, and asked him to pay $53,568 in taxes and $10,714 in penalties.
Mr. Vandegrift said, “No,” and took the IRS to court.
Fails Real Estate Professional Test
Mr. Vandegrift was a successful salesman in a field unrelated to his real estate activities. In court, he claimed that he spent more time on his real estate rentals than he spent being a successful salesman.
The court found Mr. Vandegrift generally honest and ... Log in to view full article.