Couple Loses Deduction After Failing to Show Hours Spent on Rental Property by Others The Tax Court held that a couple could not deduct losses incurred from their rental activity because they could not prove they met the material participation requirements with respect to that rental activity. The court rejected the husband’s argument that he spent 100 hours on the activity and thus met the requirement of Reg. Sec. 1.469-5T(a)(3) after finding that the couple did not have any documents showing the number of hours other individuals, such as the property management company that oversaw the rental of the property, spent on those activities in connection with the couple’s rental property. If you have any questions, please feel free to call.
Its time to gather your data for your 2019 tax returns. If you want us to take a look at your tax situation bring us your 2018 returns for us to review and give you the opportunity to ask questions.
Many of you may be receiving phone calls from someone holding themselves out as an IRS agent and telling you that you owe taxes and that you need to pay them right now or you will be arrested. You need to know that the real IRS NEVER NEVER calls people to threaten them for not paying their taxes. The IRS always contacts people via US Mail; if you get a letter from the IRS do not ignore it. Feel free to contact us to help you with such correspondence.
Effective for 2013 and forward the IRS will allow a deduction of $5 per square foot for the portion of the home that is used exclusively in a qualified business, not to exceed 300 square feet ($1,500). Additionally you can still deduct all of your mortgage interest and property taxes as itemized deductions.
For tax years beginning in 2018 the home office deduction is no longer available to employees as a miscellaneous itemized deduction.