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Real Estate Pro Status Does Not Mix With Full Time Day Job

Real Estate Pro Status Does Not Mix With Full Time Day Job

I think it is close to hopeless for someone with a full-time day job to win one of these cases.  If you are going to try to do it anyway, keep a detailed log of your real estate activities, contemporaneously.  Cross-reference the log to documents such as invoices, phone bills and print-outs of e-mails.  Have a nice fat three-ring binder to hand to the agent when the question comes up.  Even though the IRS seems pre-disposed to not believe anybody with a full-time day job can qualify, they also don’t like to lose cases.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.