Sec 469 str loop hole

[Stevee Danielle]

Can anyone tell me exactly what part of sec 469 of the tax code that explains what qualifies you as a real estate professional? I am having a disagreement with my CPA. He says that you have to have a 7 days or less on average AND offer significant services. Everything I am reading and the tax class I took says that you have to maintain an average of 7 days or less OR 30 days or less with Significant services. Can someone please shed some light on this. Thanks!

[Bruce Lynn]

Quote from @Stevee Danielle:

Can anyone tell me exactly what part of sec 469 of the tax code that explains what qualifies you as a real estate professional? I am having a disagreement with my CPA. He says that you have to have a 7 days or less on average AND offer significant services. Everything I am reading and the tax class I took says that you have to maintain an average of 7 days or less OR 30 days or less with Significant services. Can someone please shed some light on this. Thanks!

I would listen to your CPA.  I think for most people, Real Estate Professional is pretty tough to get, unless you really spend a significant amount of time being a real estate professional.  Even then if you qualify it doesn't mean you can deduct your passive loss expenses...only in certain situations.   If you think you CPA is not correct, consult another.  Consult one that is your advocate and that may be one that is NOT telling you what you want to hear, but telling you what you NEED to hear.

You might look at this presentation and see if it helps.  There are plenty of resources that explain it, although I'm thinking there are a lot of people who think they qualify but really can't.  It's interesting to look into, but very few people can take advantage of it. 

https://www.irs.gov/pub/irs-ut...

https://www.irs.gov/pub/irs-pd...