I've dedicated many hours to property investments and kept detailed records of my deals. Could this experience qualify me for Real Estate Professional Status?
Hey Oli, your investment journey is fascinating. How do you feel your records stack up against IRS expectations for material participation? I’m curious if you’ve noticed any gaps in the process. What sources are you relying on for guidance?
In my experience, having detailed records is essential, but the challenge lies in demonstrating active participation in every property. My own efforts in real estate investments required clear documentation of hours spent and decisions made to satisfy the IRS criteria for material participation. The process involved confirming that every step of my involvement was adequately recorded to differentiate between passive and active management. Consulting with a tax advisor helped me align my records with procedural standards, which might be a worthwhile step in your situation.
hey oli, your logs r pretty solid if rough details show hands-on work. sometimes small mistakes may not cut it, so chat wt a tax pro to be sure IRS rules are met. good luck!