Real Estate Professional Test
Several test are involved when determining if an individual is a Real Estate Professional for tax purposes, however, we have provided the basic test in determining if you may qualify. Consult with Wise Tax Services prior to making the election as a Real Estate Professional for accuracy.
Real Estate Professional Basic Test
The taxpayer must show that more than one-half of the personal services performed by him in trades or businesses were performed in real property trades or businesses in which he materially participated; and
The taxpayer must show that he worked more than 750 hours in real property trades or businesses in which he materially participated.