RE Professional Qualification Question

[Mike Mampieri]

Good morning,

I am new to RE investing, an made an uneducated decision trying to offset some income taxes. My CPA informed me that my AGI exceeds the $100/150k threshold to have pass through passive income losses offset non passive income. I understand these losses will accumulate and release on sale of property to offset capital gains.

To back up, I purchased an investment property that needs a facelift, nothing major, and expect a significant 1st year loss because many of the repairs would not be capitalized. Ongoing, I don’t anticipate this property being a high positive cash flowing property, I purchased on speculation of future developments.

Now, after that long background, I’m finally getting to my question. My wife, a domestic engineer (stay at home mom) could and is willing to put in the time to become a real estate professional. My CPA informed me that it would be difficult for her to qualify as a RE professional because I only hold one RE investment. Is there something that clearly states what would qualify her as a real estate professional outside of the 750 hours?

Thanks