The IRS has made it easier for real estate pros with rental losses to get a tax break (tough luck for the rest of us).
They can now make a key tax election on an amended return without asking IRS for a private letter ruling. Individuals who spend more than one-half of their working hours and at least 750 hours a year materially involved in real estate as a developer, broker, landlord or the like can avoid the passive loss rules and deduct their rental losses.
But if they have multiple rental properties, they must meet the time tests on each one unless they elect to treat all the rentals as a single unit. Now, if a real estate pro has reasonable cause for a late election, the Service will OK it (Rev. Proc. 2011-34).