If you're a landlord (or want to be one), there has never been a better time to be a real estate professional. If you satisfy complex IRS rules and qualify as a real estate professional, the passive activity loss rules will not apply to limit the deductibility of any rental losses you incur, and your rental income will not be subject to the new 3.8 percent Medicare investment tax on people with incomes over $200,000 ($250,000 for married taxpayers filing jointly). Thus, you can benefit whether your rentals earn money or lose money. The trick is qualifying as a real estate professional. You might think that a person who owned and managed 28 rental units would easily qualify. But you'd be wrong. Mohammad Hassanipour owned 28 rental apartment units in seven fourplex buildings in Vallejo...
Real Estate & Personal Finance
Mar 29, 2013 by Stephen Fishman