After buying a condo, I have learned that 95% of the condo owners here have absolutely no interest or participation in the association.

Read up in the forums, articles, blogs and be sure to participate on the forums.Glad to see another DFW member!

But I did notice she barely reviewed the piles of receipts I had assembled using NEAT but used the front sheets reports NEAT generates to summarize all the expenses.Mileage was a big deal, if it was specific to a property she allowed it but well documented mileage to do other business was in most cases denied but it wasn't worth arguing about.It was an exhausting three days but I leaned a lot.

A quick Google search turned this up:http://www.massrealestatelawblog.com/2011/04/25/reba-v-nreis-ruling-massachusetts-real-estate-attorneys-must-not-only-conduct-closings-but-take-substantive-participation-in-residential-transactions/

As Norm M. said you have to be involved in at least 750 hours per year in real estate trade or business AND it has to be more time than you participated in any other business activity.So you actually income will be less.Do not forget that depreciation will be a deduction.

You or another party can execute a recorded deed of trust against the property, but your wife would need to participate as her notarized signature is required on a recorded document.

Finally decided to jump in and participate.

I toured a couple of quads in Austin that barely broke 1.4% and were basically slums.

:P My guess is they probably had a minor impact to you, but so insignificant that you barely noticeSteven Walter, great article. thanks for sharing

In addition, services performed as an employee do not count unless the employee is at least a 5 percent owner.Finally, before rental losses are deductible without being limited by the passive losses rules, the taxpayer must materially participate in each rental.