Real Estate Investor Claims $22k Tax Loss - Does Tax Court Agree?

In a recent Tax Court case, a real estate investor built a carriage house and claimed a $22,000 tax loss against their active income. But to claim a tax loss from rentals, you generally need to qualify as a real estate professional or run the short term rental "loophole." This real estate investor worked a full time job and claimed to have spent an additional 2500 hours during the year building the carriage house. They hired a property management company to manage the rental once it was done. Watch until the end to see if the Tax Court sides with the investor or the IRS. And if you need help with real estate professional status, click this link to schedule a discovery call: https://go.therealestatecpa.com/4byeu21