Who holds what, and who qualifies
Two questions that only make sense together. Which entity holds which project, and whether anyone in the household qualifies as a real estate professional. Get the entities wrong and the for-sale units contaminate the rental ones. Get REP status wrong and losses that should have been active sit suspended as passive, doing nothing, sometimes for years.
What we typically see: One entity holding everything. REP status assumed and never documented against the hour tests. Suspended passive losses stacking up while the tax bill on the development side goes unrelieved.
23 pages and 12 categories, written by Jose A. Ramirez, EA. Work through it with your job cost ledger open and see which deductions you have not claimed and which records you still need.
Get the ChecklistSplitting the for-sale units into their own entity was the whole ballgame.
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