By: Jim Mauro
The Internal Revenue Service has increased its audit activity in the area of deductible losses from real estate investments. A taxpayer who is classified as a “real estate professional” (or “REP”) is eligible for certain relief from the automatic passive rule regarding rental real estate. A REP must satisfy one of seven tests to qualify his or her participation as “active” in order to currently deduct losses related to such activity.
Please contact Jim Mauro in the Lansing office at 517-487-4701 for further information.
