Real Estate
Real Estate Professional Status
Change how qualifying rental losses are treated.
About this strategy
Rental real estate losses are generally subject to passive activity rules, which can limit when they may be deducted. Taxpayers who meet the requirements for Real Estate Professional Status (REPS) and materially participate in their rental activities may be able to treat qualifying rental income and losses as nonpassive. Generally, qualification requires more than half of the taxpayer's personal services in trades or businesses to be performed in qualifying real property trades or businesses and more than 750 hours of qualifying services during the year.
Implementation resources
Slides, templates, and supporting videos.