Real estate professional qualification

[Lyle Cooper]

The real estate professional rule states:

"A taxpayer will be considered a real estate professional if (1) more than one-half of the total personal services the taxpayer performs in trades or businesses are performed in real property trades or businesses in which the taxpayer materially participates and (2) the taxpayer performs more than 750 hours of services during the tax year in real property trades or businesses in which the taxpayer materially participates. 3"

I spend over 1700 hours a year working on my real estate properties.  The majority of that work is renovation work.  I think I should qualify as a contractor.  I do all the taxes and record keeping (Quickbooks).  I deal with the tenants leases, repairs and other issues.  I spend ALL my time on real estate activities.  Real estate is my sole source of income.  I have no other job.  I do make some money from interest and dividends - but not a lot.

DO I QUALIFY AS A REAL ESTATE PROFESSIONAL IN THE EYES OF THE IRS?

I am a landlord with 2 rental properties. 1 condo and 1-three family house. Both are located in NYC.

I gut renovated my condo and rented it out. I purchased the 3 family house and I am in the process of gutting it out myself.  I have one tenant on the 1st floor of the 3-family house.

Thanks