24 July 2016

Another of his jobs is to control the children

In addition to meeting the qualifications for real estate professional status, an investor also needs to be able to show that they “materially participate” in the rental properties that they own. Material participation is defined as the taxpayer being involved in the operations of their real estate in a regular, continuous, and substantial way. The IRS has seven tests that may be used to determine whether the taxpayer meets the requirement, and they can be found in Appendix B.

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