Dallas TX - Real Estate Professional Tax Classification and the IRS
By Bob Jablonsky, We're Tax Specialists for Real Estate Agents
(Bob Jablonsky & Associates)
In this week’s installment in our series of taxation and investing in Real Estate we will discuss who qualifies as a Real Estate Professional in the eyes of the IRS and what does it mean to be a Real Estate Professional. Generally, if I ask any taxpayer who comes into my Richardson TX tax office who owns investment real estate if they are a Real Estate Professional, they will tell me YES, but who actually qualifies under IRS rules. What is a Real Estate Professional?There are two tests that must be met to qualify as a Real Estate Professional for tax purposes and the taxpayer must meet BOTH of the requirements: They must perform 750+ hours of service during the year in real property trades or business (More Below), Must be performed in Real property trades or business, Must materially...
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