R/E Professional Election

[ILLMAS]

Does anyone here have a sample paragraph (treating all properties as one) to include on a tax return?

Thanks

MAS

[Elrod]

look at pub 946.......PDF] 2011 Publication 946

www.irs.gov/pub/irs-pdf/p946.pdf

[michaelmars]

i believe its pre formated on the election sheet of atx

[SaraEA]

Be careful with that election. It means that if any one property is sold or taken out of service, gain or loss is not recognized until ALL the properties are sold. Suspended losses remain suspended until that time. Be sure your clients aren't planning on disposing of any of their holdings until they exit the landlord business altogether.

[michaelmars]

But a RE Professional shouldn't have suspended loses if they qualified each year. all loses are fully deductible which might result in an NOL but not suspended loses.