Update on IRS Challenge of Real Estate Professional Status

The IRS started challenging the real estate professional status over two years ago. Since then, we’ve seen a lot of audits, unfavorable audit results and a few court cases.

The real estate professional status allows taxpayers to take full advantage of real estate losses against other income. Without that, your loss is limited if you make less than $150,000 and you can’t take any loss if you make more than $150,000.

No wonder the IRS is after this status!