RE Professional Tax Benefit w/ Spouse W-2 Income

[Joyce Talley]

Hey everyone, hoping to get some insight from this group regarding the RE Professional Tax benefit.

I see lots of articles claiming that I should be able to deduct rental losses against my husband’s W-2 income if I claim the RE Professional Tax status. However, I spoke to a CPA just now and he told us that this is not accurate. He said that I would only be able to deduct against my own income. He also said that I'd only be able to do this with properties that are purely under my name, and if I co-own them with my husband, then I wouldn't be able to even deduct them against my own active income.

Can anyone confirm this info? Here’s a snippet from a Bigger Pockets article I found showing that I should be able to deduct against my husband’s income:

"Here’s another great thing about real estate professional benefits: As soon as one of the couple meets the qualifications, both receive the benefits. Jamie’s rental losses can offset Darin’s medical income—even if Darin himself is not a real estate professional." Link to article here.

Any help here would be greatly appreciated!

Joyce