This course is designed to give individual real estate investors the knowledge to comply with U.S. federal tax rules for their real property investments. Many real estate investors are familiar with how to track their income and expenses for accounting purposes, but they are not familiar with the particular federal tax rules on what needs to be reported and which expenses are eligible for a deduction. The IRS also has very specific rules surrounding when a real estate investor can deduct losses on their tax return, so we will cover those issues as well.

The topics covered within the guide include the following:

1. What constitutes rental real estate income under federal tax rules? Is it cash, property, crypto, etc?

2. What are common expenses for a rental property. Which amounts are tax-deductible under federal tax rules?

3. How does the owner calculate depreciation expense for the property. When does depreciation start, and which pieces of the property are not depreciable assets?

4. The guide includes an example of accounting for income and expenses using federal tax rules.

5. What are the passive activity loss (PAL) rules for investors and what are some exceptions?

6. What are the IRSForm 1099 reporting obligations for rental businesses?