Real Estate Professional Status (REPS)-Jobs That Count Towards

[Patrick Q.]

Hello guys,

Considering making moves to achieve REPS.

I have read the rules quoted from the IRS sites that come up on almost every internet post I have found relating to this subject.

Having trouble figuring out how REPS could be achieved given my specific circumstances.

I have a construction management background.

Question#1:

Does anybody have any have any suggestions of W-2/salary type jobs I could take and have those hours count towards eligibility?

Notes:

I would rather not become a realtor.

Looking for something that I could do where my construction management background could provide value and command a decent/good salary.

Perhaps in the construction division of a property management company or something like that.

Question#2:

Once I find something that would work to achieve the status, can it be a W-2 job for somebody else?

Notes:

The work would not be in my own business. I would be an employee working on stuff that counts towards the desired status.

Separate note: I have one rental property that I self-manage every aspect of and plan to add more over time.

[John Underwood]

The problem is that any W2 job working for someone else cuts down on being able to make the minimum hours required for your business.

[Patrick Q.]

@John Underwood

Thank you.

So I guess W-2 work for another company doesnt count for my REPS status?

For the hours worked to be eligible, I would have to do the those hours in my own business or on my own properties and have it be more hours than any other work that I do right?

[Ashish Acharya]

Originally posted by @Patrick Q.:

@John Underwood

Thank you.

So I guess W-2 work for another company doesnt count for my REPS status?

For the hours worked to be eligible, I would have to do the those hours in my own business or on my own properties and have it be more hours than any other work that I do right?

Not it doesn't count unless you own at least 5% of the company. 

[Michael Plaks]

@Patrick Q.

You might not need REPS at all, with your one rental property. Depending on your situation, you might already be able to take all the losses if you have them. 

Even if you have more losses than what you can take, chasing REPS may not be worthwhile.

As it was mentioned, your W2 work will never count for REPS unless you own 5% of the company.

Finally, I would never be choosing my employment from a tax angle even if it could reduce my taxes. This is a classic case of letting the tail wag the dog.

[Patrick Q.]

Thanks guys.

@Michael Plaks

@Ashish Acharya

Reevaluating my long-term plan at the moment and trying to figure out what moves could be possible/usefull without changing careers/starting from scratch.

Your information is great and appreciate you guys taking the time to provide good info.

[Katie Bustos]

Quote from @Patrick Q.:

@John Underwood

Thank you.

So I guess W-2 work for another company doesnt count for my REPS status?

For the hours worked to be eligible, I would have to do the those hours in my own business or on my own properties and have it be more hours than any other work that I do right?

 I think it can count if you own at least a 5% stake