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Updated over 3 years ago,
Qualifying as Real Estate Professional with Construction Company?
I have 15 rentals. I also own 19% of our family cabinet manufacturing business, and actively manage it. I work 45-50 hours / week in the business. Our clients are custom home builders. So, we are directly working in the construction industry. My question is, does this qualify me as "Real Estate Professional" status?
IRS Code 469-7-c(7)(C):
"Real property trade or business
Real property trade or business. For purposes of this paragraph , the term
"real property trade or business" means any real property development,
redevelopment, construction, reconstruction, acquisition, conversion, rental,
operation, management, leasing, or brokerage trade or business."
I asked my CPA and he is looking into it, he says he's not sure. Do any of you own businesses in the construction industry and claim real estate professional status?