Hi everyone,I’m considering buying a 2,500 sq ft commercial property with this deed restriction (in place until 2037):“Neither Grantee nor its successors, assigns or legal representatives, lessees, or sublessees, shall conduct or permit the conduct on the Property of, and the Property shall never be used for:(i) a grocery or convenience store selling at retail any food or food products, dairy products, beer, wine or other alcoholic beverages for consumption off the premises;(ii) the retail sale of any food or food products, beer, wine or other alcoholic beverages for consumption on or off the premises.”My plan is to use the space as an event venue (birthdays, weddings, baby showers, etc.), where renters bring/cater their own food and drinks.

The IRS only allows hours that are directly tied to real estate activities—like developing, managing, acquiring, leasing, or operating rental properties—to count toward Real Estate Professional Status (REPS).

If one spouse qualifies for reps and materially participates in the rental activity, then all the rental activity should be eligible to write off any losses against active income to better help, can you describe how your mom is a real estate professional?

Instead of reacting emotionally, I stayed professional.

Tampa, FL - several major hospitals, MacDill Air Force Base, professional sports and universities and colleges.

Quote from @Zach Logan: Hi everyone, I am posting in here to hopefully find someone knowledgeable and respected in the tax business for real estate professionals.

It’s not just about defense. it’s about setting yourself up to invest with confidence.To navigate this properly, consider partnering with experienced professionals such as a real estate-savvy tax advisor and an asset protection attorney who understands your goals and risk tolerance.

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That’s a normal path when people don’t do the study in year 1.Why that matters for youSince you’re planning to qualify as a Real Estate Professional in 2026 (and presumably materially participate in that rental activity in 2026), doing the cost seg in 2026 lines up better — that’s the year you can actually use the big deduction against other income.

Wedding venue for my cousins daughter.