W2 employee...filing real estate professional

[Lloyd Hudson]

I just had the privilege of going through my first tax audit and fortunately came out with a no change. However, I wanted to take a second to remind any investors who are still gainfully employed, and self manage their real estate portfolio, the importance of keeping a detailed ledger of their material participation in their business, i.e. per location, hours spent, as well as description of task. I assure you the 750 hours is just a bench mark and it will be scrutinized if you still have a W2 job or are not a licensed realtor.

[John Woodrich]

I just wanted to make it clear for others.  If people have their ducks in a row like you did they will be OK in these audits.  As you mentioned it is VERY important to track time spent because it is impossible on the back end and the agent will not believe you.