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217. Understanding the Unexpected Impact on REPS When Married Filing Separately

Tax Smart Real Estate Investors Podcast

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How to Filing Separately Versus Jointly to Protect Your Income

The past activity loss rules say that all rentals are passive unless you qualify as a real estate professional and materially participate in the activity. One spouse has to meet it completely on their own, but for material participation, spouses can combine time. The problem is when you're filing a joint return will great. Like Brennan said before, the joint return is now like a real Estate professional and both you'll get the benefits. But if you file separately, only the spouse that actually met the requirements is able to claim the real estate professional status.

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