Drawback of combining future properties under real estate hours

[Nitanth Vangala]

Hey guys,

I may be interpreting this all wrong so please feel free to correct me. In reading the code on real estate professional status, it is mentioned that each rental property is listed as a separate activity. You can combine the hours for all the properties by writing a letter with the original tax return form however this further binds all the properties as one for all future years. My questions are the following:

1. What is the drawback of all properties being under one activity?

2. Does it matter in the end? Are 750 hours required on one activity or can the hours from multiple properties be added together to get the 750 hours?

Thanks!