Achieving Real Estate Professional Status for Tax Benefits

[Bette Hochberger]

Achieving Real Estate Professional Status (REPS) can allow investors to deduct rental real estate losses against other income, potentially providing substantial tax savings.

Key Points:

1. Qualification Criteria: REPS requires performing more than 750 hours of real estate services per year and more than 50% of all personal services in all businesses.
   
2. Documentation: Properly documenting time spent on real estate services is critical for substantiating REPS.
   
3. Strategic Planning: Careful planning and structuring of real estate activities are essential to maximizing the benefits of REPS.