- More than half of your personal services you performed in any businesses or trades were performed in real property businesses in which you materially participated.
A real property trade or business is any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, brokerage trade, or business. Services you performed as an employee are not treated as performed in a real property trade or business unless you owned more than 5% of the stock (or more than 5% of the capital or profits interest) in the employer.
- You performed more than 750 hours of services during the year in real property trades or businesses in which you materially participated.
In order to be considered a real estate professional, you must meet both of the following criteria: