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Updated over 3 years ago on . Most recent reply

User Stats

8
Posts
2
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Michael Garland
  • Property Manager
  • Lancaster, PA
2
Votes |
8
Posts

REI professional audit?

Michael Garland
  • Property Manager
  • Lancaster, PA
Posted

Has anyone been audited on their 750 hrs as rei professional? I was over half last year but didn’t keep records!

Thanks

Most Popular Reply

User Stats

66
Posts
30
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Christian Stoecklein
  • Accountant
  • Pittsburgh, PA
30
Votes |
66
Posts
Christian Stoecklein
  • Accountant
  • Pittsburgh, PA
Replied

FYI - This topic is called out in the IRS Audit Technique Guide with specific questions and examples. 

Things to consider in addition to the need for backup and support of the hours....

Its not just 750 hours in real estate but also more than one-half of your time is performing real estate.  Meaning if you have full time W-2 thats not real estate then that provision could be an issue.  Also consider the material participation rules for your properties and make sure you qualify. 

Christian

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