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Real Estate Professional Help - Title Company Owner #689
Coming to this community first for some direction/help! I have read a few articles, listened to BiggerPockets podcast #689, and am currently reading real estate by the numbers. However, I still could use some help with my specific situations.
Question #1: My father is a majority owner in a title company (its also his full time job) and he holds his real estate license. He doesn't do much buying/selling real estate but works in his title company well over 750 hours, its his primary job, and is well over a 5% owner in the company. Would his company qualify as a real property trader business and him as a real estate professional? What would he need to do to materially participate in long term rentals he acquires? We will contact his tax professional before proceeding; however, I was hoping for some help understanding before bringing it to him and sharing BiggerPockets podcast #689!
Question #2: My husband is a forester and cruises/inventories timber for a living (owner/operator). He contracts out with big land management companies as well as local real estate agents. Would his business qualify as a real property trader business under management or operations and therefore him as a real estate professional? Any insights? He also works well over 750 hours, its his full time profession, and owns the business as a sole proprietor.
Thanks for any help that can be offered with my specifics!
Rebecca