real estate

Even Professional Real Estate Agent Can't Get "Active" Losses

Under US tax code, rental real estate generates "passive" income unless proven otherwise.

One way to turn "passive" losses into "active" (more generally useful) losses is by being a real estate "professional".

However, even a professional real estate agent was not able to turn her rental losses into "active" losses because she did not devote enough time on the rental properties in question.

Good Records Help Part-Time Ski Instructor Prove She is a "Real Estate Professional"

If you have rental properties, your rental income is generally classified as "passive" unless you can prove you're a "real estate professional".

To be such a "real estate professional", you must work at least 750 hours per year on the properties, among other requirements.


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