The blog at taxloopholes.com is reporting that the IRS is challenging real estate agents who deduct their real estate losses from their ordinary income. The full-time real estate agents believe that they are ‘real estate professionals’ in the eyes of the IRS. The IRS doesn’t always seem to share that view. The two full posts that discuss this are here:

http://www.taxloopholes.com/connect/blog/diane-kennedy/2007/12/real-estate-professional-looph

http://www.taxloopholes.com/connect/blog/diane-kennedy/2007/11/irs-cracks-down-real-estate-pr