Quote from @Landon Hale: Quote from @Michael Plaks: Quote from @Landon Hale: I am looking for some clarity on the REP status.

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).

The IRS is definitely skeptical when someone with a W-2 tries to claim real estate professional status.

Some people might tell you that you do, but the fact is the tax court has only found across thousands of times its been in front of them, only 2 people with full time jobs ended up successfully defending the status.

Real estate professional status does not subject someone to self employment tax. 

So, we typically see REP status with MTR and LTRs... but not needed with STRs.

What is Real Estate Professional Status?

To qualify for Real Estate Professional Status (REPS), your hours need to come from activities directly tied to your own rental properties—like acquiring, managing, leasing, coordinating repairs, or handling tenant and bookkeeping tasks—while unrelated work doesn’t count.

I've encountered the same issue with being "banned" from Face Book Market Place this morning.I posted a house for rent on Friday and received 30+ inquiries over the weekend. 

Hey everyone, quick question—does anyone know if a company owner with an I-220A Status can get a hard money loan to buy a property?