Question about applying losses to W-2 income.

[Larry Watson]

I am in need of a good CPA. My current accountant says that I have to suspend most of my real estate losses do to the fact my wife is a high W-2 wage earner. I know you are limited to $25K if you are a non professional but now that I do this full time and have my Brokers license my losses should be unlimited. Due to my wife's position with her company are looking for a CPA that can officially sign off on our taxes because they have to be legit. 

[Brandon Hall]

@Larry Watson simply having a Broker's license will not qualify you for the real estate professional tax status. Remember, this is purely a tax status and has no bearing on how you regard yourself.

Because you have a full-time W-2 job, you cannot qualify as a real estate professional unless you work 2,081 hours annual in your real estate business. This is because greater than 50% of your time must be in a real estate trade or business. So if you have a fulltime job (2,080 hours), you must work an additional 2,081 in real estate for a total 4,161 hours. That's a lot of work.