Article Date:
October 2018


Word Count:
1402

 

 

Audit-Proof Your Time Spent on Rental Properties


If you claim status as a tax law–defined real estate professional who can deduct his or her rental property losses, your time record for the year must prove that you spent

 

1.

more than one-half of your personal service time in real property trades or businesses in which you materially participate, and

2.

more than 750 hours of your personal and investor services time in real property trades or businesses in which you materially participate.

 

If you are married, either you or your spouse must individually qualify as a real estate professional. If one spouse qualifies, both spouses qualify.

 

Achieving real estate professional status is the first of two steps. You face one additional hurdle. To deduct tax losses on a rental, you also must ... Log in to view full article.

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