The Real Estate Professional Status Evolution Of The Paper Loss - Colleen Krcelich
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Dec 18, 2023 Colleen Krcelich, a seasoned CPA specializing in real estate taxation, shares her extensive knowledge on how paper loss has evolved over the decades. She recounts the impact of the Tax Reform Act of 1986 and the introduction of 'REP Status', highlighting how these changes shaped today's real estate landscape. Colleen also unpacks the differences between active and passive income, stressing their tax implications. Her insights into maximizing tax benefits for real estate investors are both practical and valuable, providing strategies that navigate intricate IRS regulations.
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Career Shift and Real Estate Journey
- Colleen Krcelich, a CPA since 1994, transitioned from corporate roles to starting her own tax practice in 2001.
- Her and her husband's real estate journey began with short-term rentals in 2001, later shifting to long-term rentals.
Unexpected Real Estate Professional Status
- Colleen's husband's construction company inadvertently qualified him as a real estate professional.
- Certain professions, like construction and even handyman work, can unexpectedly fall into this category.
Investment Strategy Based on Profession
- Consider your profession when deciding how to invest, especially regarding real estate and its tax implications.
- Some professions, like those in construction or architecture, offer advantages for real estate professional status.