Can anyone tell me exactly what part of sec 469 of the tax code that explains what qualifies you as a real estate professional? I am having a disagreement with my CPA. He says that you have to have a 7 days or less on average AND offer significant services. Everything I am reading and the tax class I took says that you have to maintain an average of 7 days or less OR 30 days or less with Significant services. Can someone please shed some light on this. Thanks!
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
So this is territory that is best left to professionals. I would ping another CPA to get their opinion. Here is a document from the IRS that goes over passive activity loss. It is apparently only for audit training purposes but here ya go.
So this is territory that is best left to professionals. I would ping another CPA to get their opinion. Here is a document from the IRS that goes over passive activity loss. It is apparently only for audit training purposes but here ya go.
Real Estate Consultant · Denver, CO · Member since 2021 · 661 posts · 389 votes
3y
Reaching out to the majority of CPAs will not likely help. We have found that more than 50% and closer to 90% of depreciation schedules by CPAs/tax professionals on STRs are not being done correctly. After seeing so many errors and hearing the same questions over and over from clients and their tax professionals, Our VP and I wrote a Q&A document to answer the most common questions. It is being posted on a website for the Colorado Society of CPAs this month. Let me know if you want a copy.