Professional real estate status

[EJ K.]

Hi all,

Curious about this, I saw a course geared toward physicians about ways to shelter taxes. One was becoming a real estate professional. Is this a good idea?

Here’s my scenario,

Hospitalist. About 300 k a year for 7 10 hour shifts weekly  in a row. 25 weeks a Year. So I effectively have off 27 weeks/year. Currently have two rentals rental properties and primary residence.

Is this something worth pursuing? I still am a skeptic. My wife will be a resident physician starting 2021. That’s another 57 k a year for 3 years until she’s done.

Should I go for this professional status to shelter taxes? Or each shift extra I pick up is 175 dollars an hr plus a decent bonus per patient seen?

I love both, probably love medicine more right now. 

I am going for public service loan forgiveness which is 10 percent of my net income after pre tax deductions. In 7 more years my 500 k debt will be wiped clean. Doing this strategy could bring my effective monthly payment down to nearly 0.

Any input is appreciated.


All the best,
Eddie