W2 & Qualifying with a Real Estate Professional Status

2 Replies

Hello BP,

I have a question I am hoping to get an answer to.  Would someone who works for a real estate company as a W2 employee be able to qualify on their taxes as a Real Estate Professional?

For example: would a sales trainer who works at a brokerage qualify as a Real Estate professional?  Assuming their job is just training agents, not as a realtor himself.  

@Powell Chee unfortunately, no. When determining the 750 hour requirement, only real estate trades or businesses are considered. Sec. 469(c)(7)(C) provides, "the term 'real property trade or business' means any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business.

If you were the agent, your hours qualify. If you are the person who trains the agent, you are deemed to be not engaged in a real estate activity. 

The same goes for me. I'm a CPA who only deals with real estate investors as clients. That doesn't qualify me as a real estate professional. My trade is tax. Your's is training. Not real estate unfortunately.