What Activities Qualify For Real Estate Professional Status
JB
Jeremiah Boucher Founder, Patriot Holdings • Author of Finding Your Edge
Key Takeaways
- Real Estate Professional Status (REPS) lets you deduct rental losses against ordinary income — it requires 750+ hours per year.
- Material participation in real estate activities is what unlocks REPS benefits — keep a detailed time log.
- REPS combined with cost segregation can generate massive first-year deductions against W-2 or business income.
- One spouse qualifying for REPS can allow the household to take advantage of passive loss deductions.