If you are in real estate or manage your rental properties full time, then it is considered a business activity and not just an investment. You may receive additional tax deductions.  Here are several of the benefits:  You can deduct home office expenses.  If you have losses you may be able to offset ordinary income (W2 income, investment income, pension, Social Security and other income. You may be able to deduct seminars, conventions and other educational expenses.  Real estate improvements and appliances may be deducted rather than depreciated. #TaxPreparation #Taxes #CPA  #AustinCPA #GeorgetownCPA  #RoundRockCPA  #CedarParkCPA  #LeanderCPA #IRSIssues #IRS-settlement