Designating yourself as a real estate professional

[Ryan Deasy]

If you pass all of the qualifying tests and indicate at tax time that you’re a real estate professional, does that allow you to use all of your losses to offset gains?

i know as a non-real estate professional you are limited to $25,000 in losses.

Thanks!

[Bob Norton]

@Ryan Deasy Yes, if you qualify as a real estate professional under the tax code, then your rental losses are not limited to $25k.  You make an election with your tax return.  You should review the criteria with your CPA to make sure that you can meet the time requirements.