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Taxes - Real Estate Professional
I currently own a duplex and I live in one (with my brother renting from me) and have the 2nd unit rented out. I also am a licensed Real Estate Agent and work for a property management company.
I tried reading up on what a "Real Estate Professional" was for tax purposes but left unsure. I work in Real Estate full time. However, most of my time is as an W-2 employee of the Management Company. I get a base salary but then also receive non taxed commissions whenever I sign up a new owner for property management or rent a property. I also get non taxed commission when I sell a property (typically only 2-4 sales in a year). Approximately 60-70% of my income is from my W2 salary. I personally manage my rental separate from the company, which is not a lot of work most of the time.
My question is, do I qualify as a "Real Estate Professional"? I'm not sure if being a normal W-2 employee counts towards this.
Lastly, if I do, is it worth it, does it increase audit risk? I am mostly considering doing this to use losses from the rental property to cut back on my taxes from the non taxed commissions I receive.
Thanks for any insight!