cpabsd Posted February 29, 2012 Report Share Posted February 29, 2012 My client was unemployed for most the year and definitely meets the 750 hours rule. I also know that the 750 is per property unless the election is made to treat the 5 properties as one. My question is what happens if in 2012 they are no longer a real estate professional? Does that draw any red flags to IRS as the more favorable treatment was received for one year only? Real estate professional is determined each year, but once the properties are combined as one they are left that way forever or until they are all disposed of. Is this correct? Can you just combine two of the properties if you have documentation to prove that the 750 was met on those two properties alone? This client also has modified AGI of close to $150,000 so passive loss limitation is a factor in this decision. The losses are being severely limited. Will real estate professional help much as there is still a limitation? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.