I have a question. I own 2 rental properties, one long-term and one short-term. With the short term one alone, I work well over 750 hours on it per year. The other one I also put in some time. My issue, however, is that I also have a job working 35 hours a week. If I am reading correctly, I would not qualify as a real estate professional because of the 35 hour a week job, even though I work well over the required time with my rentals. Is this correct? Is there any exception to this rule? It seems silly as it really equates to someone having both a full and part-time job, which lots of people do. Can anyone give me some guidance on this?
Real estate professional designation has two requirements:
1) You work at least 750 hours per year on your real estate activites
2) You spend more than half of the total working time on your real estate activities, in your case that must be over 1,820 hours per year.
There are no exceptions to this rule.
You would not qualify.
The test that catches most people is that you have to put more time into the RE profession than any other. So if you work 35/week 1,820 hours would be the minimum to beat for it to be an option.
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