Do I Need a RE License?

[Krista Roodzant]

Do I need to have my RE license in order to manage my portfolio in CA?  Can I qualify as a "real estate professional" for tax purposes, if I manage my portfolio without a license?

[Natasha Keck]

@Krista Roodzant.  Qualifying as a real estate professional is a simple recipe.  I'll defer to @Brandon Hall, who I think is a CPA for the qualifications.  He's got a good post here.  As for not getting audited, there is no recipe, that's just luck.  I have heard that being a real estate professional increases your chances of audit significantly so make sure you qualify before claiming this status on your tax returns.  If your records and actions would stand up to an audit then you've got your bases covered.  I keep a detailed daily log of my activities that count as real estate professional hours.