This episode is part 3 of my conversation with the “black belt” in real estate taxation, Michael Plaks. If you weren’t able to follow this episode, please go back and listen to part 1 and part 2.

Let’s jump right into Michael’s story and how he saves real estate investors from excessive taxation.

[00:01 - 05:29] Real Estate Professional Documents

• How do I document what I’m doing so that I could be considered a real estate professional?
• • Your tax professional is not going to ask you to prove anything as long as it makes sense.
  • IRSA may ask you to prove it
  • Keep track of these four items for every expense: ‘where, how much, to whom, and why.’
  • If you have multiple properties, you will have to keep track of the no. 5, ‘for what property.’
   ...