The Real Estate Professional Status
Navigating REPS Audits: Insights from a Former IRS Agent
Jan 4, 2024
Yisroel Jacobovitch, a former IRS agent turned private practitioner, shares valuable insights on navigating the often daunting world of IRS audits. He discusses the complexities of Real Estate Professional Status audits, emphasizing what triggers them and the IRS’s scrutiny. Yisroel highlights essential strategies like accurate record-keeping and effective communication with auditors. Listeners also learn about proactive measures to minimize audit risks and best practices for documentation that can make all the difference during an audit.
48:03
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Understanding the triggers for REPS audits is crucial, as significant tax benefits often lead to increased IRS scrutiny and potential examinations.
- Maintaining accurate documentation and having a CPA present during audits can significantly improve outcomes and help navigate complex questions from IRS agents.
Deep dives
Understanding Real Estate Professional Status Audits
Real estate professional status is subject to higher scrutiny during IRS audits due to the substantial deductions available to those who qualify. The podcast highlights that audits are often triggered by the substantial tax benefits associated with this status, leading to a greater likelihood of an examination by IRS agents. IRS auditors typically have a preconceived notion that individuals claiming this status may be involved in fraudulent activity, thus prompting them to dig deeper into the claims made in tax returns. This inherent risk of scrutiny means that anyone seeking this status should be both aware of the criteria involved and adequately prepared with supporting documentation.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
