The short answer to, “Are real estate agents and real estate brokers one in the same for passive income loss rules” is yes. Real estate agents can claim the same exceptions as real estate brokers. There was some debate about the situation between the courts and the IRS. While the IRS attempted to argue that a taxpayer should be a broker in order to pass the material participation test, the courts thought differently. From the court’s point of view, they decided that the term “brokerage” is a common meaning. Additionally, they pointed out that the business a real estate broker does is very similar to that of an agent.
What exactly are the passive income loss rules? To put it shortly, it’s a set of rules the IRS put in place to stop individuals from using passive losses to earn an ordinary income. At Advanced Tax Advisors, we’re here to help all of our clients find the peace they need this tax season. Taxes and accounting are an entirely different world, and only those with a trained eye are genuinely familiar with the rules and regulations. If you’re uncertain about whether or not you apply for the passive income loss rules, you’ll want to call one of our experienced team members today. We work with businesses and individuals so that our clients can focus on what they do best, while we do what we know best.
For more questions about what you qualify for, where you can find your deductions, and how you can better manage your portfolio, call (954) 888-6941 today. Advanced Tax Advisors is a collection of advisors and consultants for taxes, CFO services, businesses, and more. Don’t go through tax season alone if you don’t have to.