Tag Archive for Rental Property Activity

Real Estate Professional For Income Tax Purposes

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Richard S. Leyh et ux. v. Commissioner – Contemporaneous Log Detailing Rental Property Activity Permissible in Defining Real Estate Professional for Income Tax Purposes

Richard S. Leyh et ux. v. Commissioner (T.C. Summ. Op. 2015-27) details a case in which a taxpayer could revise her contemporaneous log of daily rental property activity and qualify as a real estate professional for income tax reporting purposes.

When the IRS audited the taxpayer’s 2010 return, the log totaled 632.5 hours spent in real estate activity (at 12 rental properties). The taxpayer lived 26-30 miles from the properties and when revising the log, which did not include travel time, it totaled 846 hours. Read more