750 Hours a year

Forum|Forum|1 year ago
March 24, 2025
1 reply
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I actively manage my 3 rental properties along with my full time non real estate job. I do all the maintenance, I look for tenants, screen tenants, I do everything. I keep records of everything I do. When I select the 750 hours a year actively involved in real estate it comes back and says I don't qualify. Any reason why not and if it did allow me what benefit would I have received?

TurboTax Home & Biz Windows

MinhT1

Spending more than 750 hours in real estate alone is not sufficient to qualify as a real estate professional. You need to pass all the following four tests.

In TurboTax, you need to check both boxes saying that you spend more than 750 hours a year actively involved in real estate and that you spent more than 50% of your work-related time involved in real estate.

You are a real estate professional if all of the following are true:

- You materially participated in a real property trade or business.

- More than half of your time is involved in real estate activities during the year.

- You materially participated for more than 750 hours in this business.

- You materially participated in each rental real estate activity.

As a real estate professional, you can deduct losses from real estate activities against your ordinary income. This can potentially help reduce your overall tax liability.

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