Hi Nancy, did you speak to them in the office or did you do my mail or phone? Was it a long process or was it resolved once you showed the guest list? I think you may be the first person on here who has been audited.
@John Carbone
I finally got an agent assigned and called him. I told him why I was right, it's non passive. He finally understood how the regulations on STR work and asked if I "do Airbnb". Once I told him yes, he asked if I had a guest list showing 7 night or under stays. I faxed him 8 pages worth of our guest lists. This was months after I had submitted to no one in particular my log of 200+ hours of material participation, along with citations from the irs tax code.
It wasn’t an audit per se, it was more like a request for clarification. Maybe it’d be called an audit but it was only about that one issue, they saw this as passive investing, like traditional LTR.
Noteworthy, every CPA that markets their STR loophole courses, and they are here on BP and on FB and have been mentioned here, they all act as if they have the secret to saving hosts thousands of dollars. It’s no secret, and you don’t need a course. You don’t even need a real estate savvy CPA. You just need to know the so-called STR loophole, ie, the regulations, the law- and tell your CPA. It’s a fairly new regulation and as Airbnb and STR have exploded in recent years, the irs agents simply don’t have enough experience with hosts returns, like they do real estate investor LTR returns.
No one cares about your money more than you.
