Rental Real Estate Passive Activity Loss FAQ

March 25, 2014

IRS challenge to Real estate Professional status

Under audit the IRS will often insist upon the taxpayer producing contemporaneous time logs to substantiate the time put into the rental activity. However, the regulations […]
March 25, 2014

What is the Real Estate Professionals exception?

Rental real estate activities performed by a real estate professional are not considered passive and therefore related losses cannot be used to offset passive gross income. […]
March 25, 2014

Special allowance for rental real estate activities

Like regular rental activities, loss generated by real estate rental activities is passive but with one difference. Under the rules passive income loss is not currently […]
March 25, 2014

How are rental activities defined?

A rental activity is any activity where gross income is derived principally from amounts paid by customers for the use of tangible property. However, an activity […]
March 25, 2014

What are the conditions of a passive activity deduction?

In order for a passive activity loss to qualify as a deduction it must meet one of two conditions. Either, it must arise in connection with […]
March 25, 2014

What is passive activity gross income?

Specifically passive activity gross income is income derived from work in which the taxpayer does not materially participate in. Nonetheless, in most situations this does not […]