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September 30, 2023
Question

I spent more than 750 hours and 50% of my working hours towards real estate rentals. Why am I still being limited on losses?

  • September 30, 2023
  • 1 reply
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I meet all qualifications to be considered an active activity.

1 reply

Employee
September 30, 2023

More than 750 hours and 50% of services in real property trades or businesses is the requirement to qualify as a real estate professional. In order to have your losses treated as nonpassive, you also need to materially participate in your rental activities.