Deducting Rental Property Losses
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Interested in deducting losses from your rental property? According to the rental passiveactivity rules, in order to deduct losses on rental property, you are required to materially participate in the rental activity for a total of 500 hours or to qualify as a real estate professional. To fulfill this requirement, maintain a diary in which you record any time spent and tasks performed relevant to the rental activity. It should be noted that you can also include the time it takes to drive to and from the rental property as well as the length of telephone conversations.

If you have further questions on this issue, please contact our offices.