Real Estate Professional Status

Real Estate Professional Status

Real Estate Professional StatusDwight 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
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Material Participation Tests

Material Participation Tests

Material Participation TestsDwight 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
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