Admit it. You’ve watched that late-night infomercialdescribing how you can become a multimillionaire

Admit it. You’ve watched that late-night infomercialdescribing how you can become a multimillionaire virtuallyovernight by leveraging your good looks and sparkling personality(and little else…) to invest in real estate. All joking aside,investing in real estate does present some opportunity for thecreation of wealth, much like any other investment does. Taxationof rental real estate, however, does present some unique rules, andthese rules can have a dramatic impact on the investor’s realizedgain or loss from the real-estate rental activity. Let’s beginoutlining the tax consequences by describing the various capacitiesin which an individual can own and rent real estate. Askeddifferently, are there distinctions in the tax law that depend onthe manner in which the property is held or used, such as betweenthose who rent real estate as a full-time business and those whomerely rent a vacation home? What are the rules that we follow intelling one type of rental property or rental ownership fromanother?
Answer in your own words, ty . . .

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