Trying to get my wife to become real estate professional!

[Joe Kim]

I work full-time (60-70 hrs) week on my regular job and do real estate on the side.  Like most people I'm working hard to build wealth and cash-flowing investments in real estate.  In the past 18 months, I've acquired 5 properties (6 units) which are all managed by property manager.  I have one that is self-managed with the best tenant you can ask for. (no phone calls or emails in the last 12+ months).  so 6 total rental properties.

My CPA - Amanda Han (listen to BP podcast #49) has been encouraging my wife to become a real estate professional to take advantage of the tax savings (especially for high earners above 200K who cannot take advantage of the passive losses).  

My wife is a stay at home mom with a full plate with 3 kids to raise.  That being said, our third (last) and youngest child is now going to pre-school in  a few months.  She may finally have more time to actually do the 750 hours of active participation/yr.   However, she has no experience as a landlord and little to no knowledge about investing.  

Finally here is my question.   Anyone know a good real estate course to attend (one that especially focuses on landlording - that's what she would be primarily doing in her 750 hours)?   That may help us to know if she can really do this thing or not.   Also, the course/trip itself will be tax deductible....and a little vacation away from the 3 kids!  Oh, also, it has be to be in a fun location to visit too.

Thanks

[Cameron Skinner]

I have successfully represented a client in an appeal before the irs on this issue. Be careful irs only counts real estate business activity toward the 750. You can't count investor activities like research looking at new properties or going over financials ect. If you're planning on growing your portfolio you might want your wife to get her real estate license. All of her time as a real estate agent counts toward her hours, and IRS really doesn't question license real estate agents licensed contractors etc. make sure you meet with a good CPA who understands real estate rentals and hopefully owns some of their own. Ask them exactly what you need to do with your circumstance and what documentation you need to keep. Lastly make sure your wife puts real estate professional in her occupation box on 1040. And you also need to add a statement to your return says: I (your wife's name) am electing to treat all my real estate activities as a single activity, pursuant to IRC Section 469(c)(7)(A).