What documentation does the IRS want to prove real estate professional hours?
The regulation doesn't strictly require a daily log — but the Tax Court routinely rejects reconstructions. Here's what documentation actually survives an audit.
What is a 1031 exchange, and why can't I 1031 into a fund?
You can't 1031 into a fund — §1031 requires real property, and a fund interest is a partnership interest. Here are the structures that actually work.
How should I structure my real estate fund for tax efficiency?
The complete tax structure for a real estate fund: manager vs GP, waterfall design, depreciation allocations, UBTI blockers and multistate filing.
When should I convert my LLC to an S corporation?
An S corp saves self-employment tax on fee income once you clear roughly $60K–$80K net. It also blocks debt basis — so it must never hold your ownership interests.
Do I qualify for real estate professional status if my spouse works and I don’t?
Only one spouse needs to meet the 750-hour REPS test, and it can’t be split. But both spouses’ hours count toward material participation. Here’s how the two tests differ.
Why isn't a loss on your K-1 a deduction on your tax return?
Every real estate loss must clear four sequential limits before it reduces your tax bill: basis, at-risk, passive activity and excess business loss. Here’s each one.
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