The IRS has specific criteria for what constitutes a real estate professional for tax purposes. One of the key requirements is that you must spend a certain amount of time participating in real estate activities. But what types of hours count towards this requirement? Here’s a breakdown:
Remember, the IRS requires that you spend more than half of your working hours and over 750 hours per year participating in real estate activities to qualify as a real estate professional. It’s important to keep detailed records of your time spent on these activities to substantiate your claim if needed.
Please note that this list is not exhaustive, and the specifics of your situation may vary. Always consult with a tax professional to understand how these rules apply to you.