Real Estate Professional Status

[Brian Jasinski]

Have been looking into what it takes to qualify, and reading posts from others on the subject.

I now understand that even if you work in a real estate related trade or service as a W2 employee, you need to own 5% of the business you work in to have those hours qualify?

Outside of that, you would need to work 750 hours in the field (management, maintenance, etc.) to qualify.

I own a few rentals, that I self manage, and do all the maintenance and day to day myself.  I can easily come up with 750 hours a year outside of my W2 job that I spend on real estate activities.....My Accountant tells me it is virtually impossible to qualify if you have a W2.

My questions are these:

1.  If I can legitimately document 750 hours outside of my W2, what more needs to be done to qualify?

2.  I own a property that is in a trust - can I use the hours managing that if I can track and document them even if it does not produce any rental  income?  A family member lives there...

3.  If one does qualify for real estate professional status, does the tax savings translate to income made at the W2 job, or only to the income made in pursuit of the real estate related activities such as rental income, etc?

Thank you,

[Michael Plaks]

Quote from @Brian Jasinski:

Well that certainly makes it more difficult...

Is there an exemption to that if you own STR's or no? Thought I saw that on another forum?

Yes, with conditions... https://www.biggerpockets.com/forums/51/topics/1122635-the-s...