Real Estate Professional Status

Dwight Dye

Published on: 01/03/2026

Qualification Requirements To qualify as a real estate professional, both of the following tests must be met: More Than Half Test: More than 50% of personal services performed during the tax year are in real property trades or businesses in which the taxpayer materially participates 750-Hour Test: More than 750 hours of services are performed in real property trades or businesses in which the taxpayer materially participates Real Property Trades or Businesses

Passive Activity Rules

Bonus Depreciation & Section 179

Dwight Dye

Published on: 23/02/2026

Bonus Depreciation & Section 179 Accelerated depreciation methods allow businesses to recover the cost of qualifying assets more quickly than traditional straight-line depreciation.

Depreciation

At-Risk & Basis Rules

Dwight Dye

Published on: 19/02/2026

At-Risk & Basis Rules Multiple limitation rules may restrict the deductibility of losses from business and investment activities. These rules apply in a specific order and must each be satisfied before a loss can offset other income.

Loss Limitations

Material Participation Tests

Dwight Dye

Published on: 16/02/2026

Material Participation Tests The passive activity loss rules under IRC Section 469 limit the ability to offset passive losses against active or portfolio income. Material participation is the key determinant of whether an activity is passive or non-passive.

Passive Activity Rules