How many people qualify as a Real Estate Professional for taxes?

[Nick Colvill]

How many people qualify as a Real Estate Professional for tax purposes? Are you more of a buy & hold investor or a house flipper? Somewhere in between or something else all together?

[Brandon Hall]

@Nick Colvill over half of our clients qualify as an RE pro and most of them are from BP. Generally can't have a full-time job and must work 750 hours and greater than half your time in a real estate activity. 

You then have to demonstrate that you materially participated in your real estate activity in order to actually deduct the passive losses. Many people forget about that. 

Hardest part about qualifying? Tracking your time. This lady, who owned 8 units, learned the hard way: https://www.ustaxcourt.gov/UstcInOp/OpinionViewer.aspx?ID=11587