Real Estate Professional
Menu Path: Income > Real Estate Professional
Most people enter rental income from rental properties. Some people need to report rental income from farm rentals, partnerships, S corporations, or estates.
If you enter rental income from one of these sources, we'll ask you about your hours of service as a real estate professional on the Real Estate Professional screen, after you finish entering all your sources of income.
In order to be considered a real estate professional, you must meet both of the following criteria:
Most people enter rental income from rental properties. Some people need to report rental income from farm rentals, partnerships, S corporations, or estates.
If you enter rental income from one of these sources, we'll ask you about your hours of service as a real estate professional on the Real Estate Professional screen, after you finish entering all your sources of income.
In order to be considered a real estate professional, you must meet both of the following criteria:
- 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, or 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.
