Real Estate Investors Beware Of the IRS

Investors Beware Of The IRS (edit/delete)

One thing I have learned about the IRS is they change rules at their own whim.  I was audited and this happened to me.
If you're a real estate investor and you deduct the mortgage interest and expenses you paid on an investment property, and you are a real estate agent, you can only claim up to 25000.  I was under the impression that you could claim whatever it was.  When I was audited the IRS agent said she had just come from a meeting to discuss this deduction.  The outcome of this meeting was you can only claim actual expenses if you are a real estate broker.  The rest of us are limited to $25000.  For years I as a real estate agent, had claimed the actual expenses.

I of course, speak from experience, if you are unsure please contact an accountant and check this out.  My accountant did not know this and that is why I lost my case.  Check with the IRS just to be sure.

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