Real Estate Professional - Significant Losses
Our client suffered significant losses in the trade or business as a real estate professional. The IRS audited this individual’s tax returns and disallowed all of her losses. The IRS proposed to assess against this individual an additional tax liability of $1,017,059.
Our office petitioned the United States Tax Court and requested a redetermination of the auditor’s findings. We also argued that the client should be treated as a real estate professional for tax purposes. After significant negotiation with the IRS, we entered into a stipulated settlement with the IRS in which the IRS agreed to allow all of her previously disallowed expenses removed the entire proposed assessment.
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