Real Estate Professional Status Qualifications

[Heather Little]

I left my corporate job last year to stay home with my daughter and focus on our real estate business. I'm trying to determine if I can qualify as a real estate professional. 

I know you need 750 material hours per year (As well as over 50% of hours in real estate business). Do they below count towards those hours?

1) Communicating with property mangers on tenant issues, vacancies, etc. 

2) Listening to/Attending Webinars regarding real estate investing

3) Driving for dollars

4) Searching MLS and online for on-market deals

5) Working on the business's social media accounts 

6) Posting and reading through real estate forums (Such as this one) for real estate purposes (finding deals, educational purposes, etc.)

[Sean O'Keefe]

@Heather Little short answer it depends.

Longer answer: Section 469 requires that you meet both the 750 hours and more than 50% test (sounds like you are aware of this). In addition, you are also required to materially participate in each property or group the activities. 

Of the tasks that you listed, only #1 count toward REPS hours for a rental property investor. “Investor” hours do not count toward material participation hours (Temp. Regs. Sec. 1.469-5T(f)(2)(ii)) – such hours include: studying and reviewing financial statements, searching for new properties, education, preparing summaries of the finances or operations, or managing the finances of an activity in a nonmanagerial capacity.

Keep in mind that REPS can include a real estate agent and tasks that count can be different than a real estate investor.
.

.

.

*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.