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IRS Steps up Audits on RE Professionals!

By
Real Estate Broker/Owner with Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 Tx Broker 0304050

I subscribe to several RE sites and this just came in on one of them.

Obviously, the author, Diane Kenney (CPA and tax strategist) is wanting to sell subscriptions to her CPA "IRS Survival Guide".  This post is not what this is about.  I don't know her, use her services or endorse anything she does.  However, I do want to help get the word out about the stepped up activity.

Here's a few interesting excerpts from Diane Kennedy's article:

"It looks like the IRS has hit pay dirt with their targeted audits of real estate professionals and real estate investors. From the emails and phone calls we've received, the number and voracity of the audits against real estate investors and real estate professionals is increasing."

and

"So, this is what we know: The IRS is targeting Real Estate Professionals. The timing couldn't be worse. At a time of dropping home values, tightened credit, and a general malaise in the housing market, an aggressive IRS audit specifically targeting the people who are suffering the most can't be good for anyone. But the IRS has their job, too, and that's to raise tax revenue."

and in conclusion:

"So, if you had real estate investments and took losses in the past few years, be prepared for an IRS audit notice. The auditor teams are ready. Don't get caught unaware! "

 

 

 

 

Posted by

Mick Michaud,

Managing broker,

United Country Distinctly Texas Lifestyle Properties, LLC
Texas license # 0304050

The Lifestyle you want, the place to live it.

Comments (5)

Veronica DeCarolis
Weidel Realtors - Flemington, NJ

Documentaion and record keeping. Our favorite things to do. LOL!  Bonnie

Jan 07, 2009 10:41 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Yeah.  She went on to say that if you're running an LLC or company, you're supposed to have specific wording in your operating agreement that will allow for the losses. 

I'm sure that if anyone is really interested in her services, you can look her article up on the 'net.

Jan 07, 2009 10:47 AM
real estate real estate
Providence, RI

Sounds scary. One thing I do know is that IRS needs to look for money to fund the losses caused by those bankers.

Jan 07, 2009 11:27 AM
Tim and Pam Cash
Crye-Leike (Sango) - Clarksville, TN
Real Estate Professionals - Clarksville TN

Certainly not good news.  I cringe at the thought.  We have a good accountant (and a pricey one).  Every time I complain about the fees, I remember that (knocking on wood) we have not been audited.  I credit that to their thoroughness.

Jan 07, 2009 11:40 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

This is why I have an accountant!  Record keeping is a must.  I'd like to know how some "investors" I've seen in the MLS, agents who bought multiple properties when the market was hot, are getting away with short sales of those properties today.

Jan 07, 2009 12:06 PM