Can Education And Research Hours Ever Count?
Theoretically, if your education and research hours directly impact the day-to-day operations of your business, they can be included as participation hours.
In Hailstock v. Commissioner, T.C. Memo 2016-146, the taxpayer owned numerous properties, didn't have outside employment, worked over 40 hours per week on stated properties, and used substantial amounts of her own resources to further her business.
Per the court case, Hailstock's duties included:
- checking messages for work orders,
- purchasing materials and cleaning supplies,
- supervising workers doing rehabilitation work,
- meeting with and conducting background checks on prospective tenants,
- executing leases,
- handling complaints regarding existing tenants,
- collecting rent payments from tenants,
- searching for new properties to purchase, and
- taking real estate classes for continuing education.
The Tax Court didn’t comment on whether searching for new properties or taking real estate classes were participation hours. However, we feel it’s safe to say that because the taxpayer was running his rental business full-time and participating in a significant manner, the education and research hours likely qualified as participation hours. Additionally, the “education” hours the taxpayer logged were to maintain his real estate license… an important variable to see continuity in a real estate agent’s business.
选择“Disable on www.wenxuecity.com”
选择“don't run on pages on this domain”
