RE Agent and RE Professional Qualification

[Alik Levin]

Dear all,

At what point RE Agent qualifies for RE Professional for the purpose of passive income rules exemption?

Here is our scenario:

* My wife has just started her career as a RE agent.

* We manage several rental properties ourselves that have passive income losses due depreciation.

* I have day job.

Does it make any difference that she is now RE agent vs. when she wasn't so?

Thank you

-Alik

[Harrison Smith]

@Alik Levin If your wife spends 750 hours a year and earns most of her income through real estate activities (agent, property mgmt, investor, etc.) then normally this would qualify her for the RE professional status. If you file your taxes jointly, that would mean her status would apply to all of your cumulative real estate activities. I would consult with a CPA to review your situation as there are nuances to the rule that might apply to you, but it would appear you are on the right track to achieve that status.