IRS will focus more closely on individual's rental reporting

By
Real Estate Agent with North Pacific Properties

Great article by Micheal Cohn about IRS focusing more closely on individual's rental loss reporting.

The Treasury Inspector General for Tax Administration called on the IRS to step up its examinations of individual tax returns that report rental real estate losses. A Government Accountability Office report found that at least 53% of individual taxpayers with rental real estate activity misreported rental net income by a total of $12.4 billion. The IRS agrees with the review, which included recommendations to identify, select and examine tax returns with rental losses.

Check out full article here: http://www.accountingtoday.com/news/IRS-Examine-Rental-Losses-More-Closely-57564-1.html

North Pacific Properties is a full service Seattle Real Estate, Seattle Association Management, and Seattle Property Management company.

Comments (5)

Larry Costa
Century 21 Classic Gold, Carver MA - Carver, MA
Realtor, MA Real Estate

One more reason that puts Real Estate agents high on the audit list.

Mar 26, 2011 11:42 AM
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Dang - my rental losses have been huge the last couple of years. I would hate to get audited but I've got receipts for every dime.  The good news is, I've finally gotten good tenants in both houses. 

Mar 26, 2011 11:48 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Been done for years...30 years ago, I had same IRS auditor for 3 years running for my Hawaii rental property....

Mar 26, 2011 12:08 PM
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

I am sure there is a lot of mis-reporting on this.  I see tax returns all of the time and often wonder who prepared them.

Mar 26, 2011 01:42 PM
Olympus Executive Realty Inc.
Olympus Executive Realty INC. - Orlando, FL
Home Of The Top Producers

Hello,

I see your coming right along on ActiveRain, once you get the hang of a few blogs they all come naturally.

Well, best of luck to your new future with the RAIN, 

Mar 31, 2011 08:00 PM