The Tax Court Just Killed Real Estate Professional Status (3 Cases You Need To See)

Your CPA said you qualified for Real Estate Professional Status. Three new Tax Court cases say the IRS and your state auditor disagree. Here’s what’s actually happening in 2026 REPS audits, why state auditors are now triggering federal audits, and the on-call hour trap that just killed the Mirch case. Would you like to learn more about protecting your assets? Schedule a free consultation here 👉 https://aba.link/p369 In this video, Clint Coons discusses a real estate investor's experience with qualifying for real estate professional status, which was initially approved by their real estate CPA but later disputed by a state auditor. This case highlights common pitfalls in real estate investing strategies and the importance of accurate tax planning. We explore how such situations can lead to an IRS audit, emphasizing the need for robust real estate tax strategies to avoid issues with your taxes. Chapters: 0:00 – CPA Approved REPS… Then the State Auditor Stepped In 2:10 – Why High-Income Earners Want REPS 4:10 – Case #1: The “On-Call Hours” Mistake That Failed Audit 6:30 – What Hours Actually Count for REPS 8:10 – Case #2: The 50% Rule That Traps W-2 Professionals 9:45 – Why Doctors & High Earners Commonly Fail REPS 11:20 – Case #3: Reconstructed Logs Get Rejected in Court 12:15 – “Post-Event Ballpark Guesstimates” Explained 13:30 – How Auditors Spot Fake or Rebuilt Time Logs 14:50 – How State Audits Trigger Federal IRS Audits 15:20 – States Most Aggressive Against REPS Claims 16:00 – Why California Rejects REPS for State Taxes 17:05 – The Biggest Mistake Real Estate Investors Make 18:30 – Final Advice for Real Estate Investors --------------------------------------------------------------------------------------------------------- FREE TAX & ASSET PROTECTION WORKSHOP Register for an upcoming workshop today to protect your business and personal assets from snoopy lawyers, creditors, or even greedy people out to make a quick buck who want to take advantage of YOU. 👉 Save Your Seat: https://aba.link/r3gs ~~~~ FINANCIAL PLANNING & RESOURCES Download your free copy of Un-Tax Yourself eBook and discover the secret to real estate wealth is in the tax deductions. https://aba.link/untaxebook 📚 Order Your Copy of "Next Level Real Estate Asset Protection: Comprehensive Strategies for Investors" Here: 👉 https://aba.link/nxtlvl For financial strategies, podcasts, articles, and details on upcoming workshops, visit https://aba.link/clintaba Here’s a little about me and my book Asset Protection for Real Estate Investors https://aba.link/clintbio ~~~~ FOLLOW US: Instagram: https://aba.link/instagram Facebook: https://aba.link/facebook Twitter: https://aba.link/twitter LinkedIn: https://aba.link/linkedin ~~~~ CONTACT US Phone: 800.706.4741 Email: [email protected] Fax: 702.664.0545 ABOUT CLINT COONS Clint Coons, Esq. has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth. --------------------------------------------------------------------------------------------------------- The information provided in this video should not be construed or relied on as financial, investment, or legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice. #RealEstateProfessional #REPS #RealEstateInvesting #TaxStrategy