Can You Deduct Your Real Estate Losses?

The Service continues to eye returns that report large real estate losses…Especially those taken by taxpayers claiming to be real estate professionals. Real estate pros have to satisfy two-time tests to beat the passive activity loss rules and fully deduct their rental losses. They must spend over half of their working hours and more than 750 hours a year materially participating in real estate activities.

The Kiplinger Tax Letter
Vol.94 no 20