Updated almost 4 years ago on . Most recent reply
Real Estate Professional Definition
Hi everyone,
Can someone kindly explain the phrase underlined below in simpler English?
A qualified real estate professional is a taxpayer who owns at least one interest in rental real estate that:
- Performs more than 50% of their personal services in real estate trades or businesses in which they materially participate, AND
- Spends more than 750 hours of services during the tax year in real property trades or businesses in which the taxpayer materially participates.