Has any of your clients effectively debated (with the IRS) they should be allowed the home office deduction against their Schedule E passive rental income ? And, what would happen if the rentals were treated as a trade or business?
Bringing up an old post that no one responded to. I think I would have a similar fact pattern here. Client has 4 duplex that he actively manages himself. Seeing if we can take HOD
The problem with an OIH for rentals is that unless the taxpayer has a respectible portfolio of units, AND self-manages (no PM), they often fail the regular use requirement of an OIH deduction. Of the many requirements for an OIH deduction, that one is the least understood.