Real estate professional status

[Alex U.]

Most people know about the STR RE professional loophole. If you are developing ground up construction and have another w2...would that qualify yours a RE professional?

[Michael Plaks]

Missing the important piece that @Jason Watson pointed out. It's not 40 hours/week plus 750 hours/yr. It's 40 hours/week plus another 41 hours/week in real estate. 81 hours per week, documented. Does not fly.

And if you claim that you only spend 20 hours a week for your W2 job, an IRS auditor will request a confirmation from your employer. Will your employer confirm?