Hey everyone, I’m in a bit of a pickle with my taxes this year. My wife and I did well financially, which means we’re losing some deductions on our schedule. I noticed an option in TaxSlayer for real estate professionals that could help us out.
I did some digging and found out you need to log 750 hours annually to qualify. Thing is, I’ve got a full-time W2 job, but I also bought 3 properties last year and spend about 2 days a week fixing them up.
A tax guy told me I can’t be considered a real estate pro if I’m working full-time elsewhere. Is this really true? Has anyone here successfully claimed this status while having another job? I’d love to hear your experiences or advice on this.
Thanks in advance for any insights!
As someone who’s navigated this terrain, I can confirm it’s challenging to claim real estate professional status while holding a full-time job. The IRS scrutinizes these claims closely, and the 750-hour requirement is just the tip of the iceberg. There’s also the matter of material participation and proving that your real estate activities constitute a significant portion of your working time.
That said, it’s not entirely impossible. Detailed record-keeping is crucial. Document every hour spent on your properties, including research, management, and physical labor. Consider restructuring your time if feasible. Some professionals transition to part-time work to focus more on real estate.
Ultimately, consult with a tax attorney or CPA specializing in real estate. They can provide tailored advice and help you explore alternative tax strategies that might be more suitable for your situation.
yo Oli, that’s a tricky one. from what i know, it’s tough to claim RE pro status with a full-time gig. the IRS is pretty strict bout those 750 hours. maybe look into other deductions? like depreciation or repairs? might be worth chattin with a CPA who specializes in real estate. good luck man!
Hey there! That’s an interesting situation you’re in. Have you considered tracking your hours spent on real estate activities more closely? It might be worth getting a second opinion from another tax professional too. How much time do you actually spend on your properties each week?