The Passive Activity Loss (PAL) rules are complex. One taxpayer and spouse who owned two rental properties attempted to report extensive rental losses. They claimed they had performed sizable management activities at both properties. To back up their claim, they provided spreadsheets to certify their activities.
Unfortunately, their hours were inflated and there were many redundant entries. They also could not back up the hours with any other records. As a result, they failed to prove that they had more than 750 hours of work in their line of business and their losses were disqualified.
Don't let something like this happen to you! Our office can help you make sure you are legally compliant with the PAL rules. Not only can we help file your complicated returns, we can also help you set up good systems to ensure that you are keeping proper records and staying within the IRS' guidelines.
Call and set up an appointment today!
Unfortunately, their hours were inflated and there were many redundant entries. They also could not back up the hours with any other records. As a result, they failed to prove that they had more than 750 hours of work in their line of business and their losses were disqualified.
Don't let something like this happen to you! Our office can help you make sure you are legally compliant with the PAL rules. Not only can we help file your complicated returns, we can also help you set up good systems to ensure that you are keeping proper records and staying within the IRS' guidelines.
Call and set up an appointment today!
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