Andrew M. D'Avanzo and his wife, Linda, own five rental properties. On their income-tax returns, Andrew and Linda claimed (1) material participation in managing their rental properties and (2) $32,258 rental property tax losses as a "real estate professional." But the IRS denied the rental property losses. Andrew and Linda paid the disputed $9,129 tax and then sued for a tax refund in the U.S. Court of Federal Claims. Purchase Bob Bruss reports online. Andrew was a full-time computer salesman, but he "guesstimated" for the court the amount of time he spent managing and repairing the rental properties. Linda is a full-time school teacher. To qualify for the unlimited rental property tax loss deductions as a "real estate professional," Andrew or Linda must prove they spent more than 50 perce...
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