California does not recognize Real Estate Professional (REP) status, but you can still claim it on your federal taxes if you qualify.

Welcome to the Forums, Justin and Reba!

Quote from @Scott Trench: @Justin Goodin - That's what I thought.

Hello, after the lawsuit are buyers representation necessary and required?I'm working on a creative finance deal with a 50/50 subto/seller finance deal. Would it be necessary in this case? 

Real-life reps, to me, means seeing properties in person, whatever your asset class. 

Can your wife qualify for REPS in theory?

@Chris Mahoo Even without qualifying for Real Estate Professional Status (REPS), long-term rentals offer key benefits like depreciation deductions over 27.5 years, deductible expenses (e.g., mortgage interest, repairs), and up to $25,000 in passive loss deductions if your MAGI is under $150K.

Quote from @Justin Buswell: Quote from @Sharron Ferrell: I am also considering signing up for the program. 

You don't want to overstretch on the first one.In terms of evaluating quality deals, you won't know what those are for a while so you want to get as many reps looking at properties as possible.

Things in your tax filing need to be really off to do this.Being a REP/active participant and using cost seg to offset a spouses (or your own if that's all you do) W-2 wages is fairly common practice.