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Are You Really A Real Estate Professional?

Are you really a real estate professional?

  • There’re a lot of people that call themselves real estate professionals, but in the eyes of IRS, there’re some very specific things that you need to do and have in your background to be a real estate professional.
  • One of the most important things, if you are going to call yourself a real estate professional on your tax return, you have to spend more time in real estate than you do on anything else.
  • There’re a lot of people that have misused and abused that classification; so the real estate profession is very specific. However, if you can qualify for a real estate profession, there are some amazing tax loopholes that you can get; especially if one spouse has a W2 and the other spouse is a real estate professional.

Hello everyone! It’s Shauna the Tax Goddess, here on TaxGoddess.com, Tax Goddess Facebook and all sorts of things related to Tax Goddess. I am so happy that tax season is over! Today, I want to talk about some tips and tricks for the end of the year; things that you absolutely need to be looking at. Also, I want to talk about the status of a real estate professional. There’re a lot of people that call themselves real estate professionals, but in the eyes of IRS, there’re some very specific things that you need to do and have in your background to be a real estate professional.

One of the most important things, if you are going to call yourself a real estate professional on your tax return, you have to spend more time in real estate than you do on anything else. For example, if you have a part-time job, working 20 hours a week, you have to spend more than 20 hours; so 21 hours every single week on real estate. The Real estate profession is one of those areas where the IRS has been hunting. There’re a lot of people that have misused and abused that classification; so the real estate profession is very specific. However, if you can qualify for a real estate profession, there are some amazing tax loopholes that you can get; especially if one spouse has a W2 and the other spouse is a real estate professional.

If you have any questions on the status of the real estate profession, make sure you check with your CPA, your tax preparer; and if you don’t have one of those, call us. We’d love to help you here at TaxGoddess.com. Hope you guys are having a great day. Can’t wait for all the coming holidays! All right, I’ll talk to you guys later. Bye.

 

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