EXECUTIVE SUMMARY
* While the passive loss limitation rules generally prevent the current deduction of rental real estate net losses, many taxpayers with real estate rental income may meet the standard for a real estate professional conducting a real property trade or business. Such status requires the taxpayer to "materially participate" in the trade or business by meeting tests of IRC [section] 469 and Temp. Reg. [section] 1.469-5T.
* Taxpayers may elect to group all their interests in rental real estate activities into a single activity, which can help them meet the above tests if they lack sufficient hours to qualify for any single activity. The election could, on ...