Should I claim my wife as a real estate professional?

[John Morgan]

We have 25 SFR that I self manage. My wife retired a few years ago due to our strong RE cashflow. What are the advantages of claiming her as a real estate professional? We show a loss on the rentals due to depreciation and write offs. My income is over 150k so I'm not sure if claiming her as a RE professional will help us in the future. Any advice?

[Jay Hinrichs]

from what i see you have to spend a certain amount of time per year in the bizz and i mean really in the bizz.. this is probably an audit trigger as well.. so if you get audited you need very detailed supporting documentation.

the Advantages of course are for the many write offs that being in the business affords us.

acquiring a RE license and actively work in the industry usually is the easiest and safest way to claim these write offs.

I am not a CPA of course but my wife and I have been in the business for virtually all our entire working life so we know no other way.. If your not paying tax's not sure what additional write offs are going to do for U.. The benefits of course of the license are access to MLS and the ability to buy and sell your own deals and not pay 3rd party commissions.. For Lori and I this is HUGE.