Real Estate Professional Status (REPS) Qualifier

Answer based on your actual current-year facts. Disqualifying answers heavily weight the verdict — these are the IRS audit pressure points.

1. 1. How many hours per year do you spend on real estate trades or businesses?

   Includes acquisition, development, construction, rental management, brokerage. Investor activities (research, money management) don't count.

   750+ hours500–750 hoursUnder 500 hours

2. 2. Is your real estate work more than 50% of all personal services in trades/businesses?

   If you have a full-time W-2 job, this is virtually impossible to meet.

   Yes — real estate is my primary tradeNo — I have a W-2 job or other primary tradeBorderline — close to 50/50

3. 3. Do you keep contemporaneous time logs of your real estate hours?

   Daily/weekly entries written as the work happens — not reconstructed at year-end.

   Yes — daily logs with task detailPartial — some records, not dailyNo — would need to reconstruct

4. 4. What's your filing status, and does your spouse work in real estate?

   Spouses' hours can combine for aggregation but EACH spouse must independently meet the 750-hour and 50% tests.

   Single — only my hours countMFJ, spouse also in real estate (full-time)MFJ, spouse has W-2 job

5. 5. Do you materially participate in each rental property?

   Material participation: 500+ hours per property, OR 100+ hours and more than anyone else, OR substantially all participation.

   Yes — for every rental I ownYes — for most rentalsSome yes, some noNo — I use property management for most

6. 6. Have you made the §469(c)(7)(A) election to aggregate rental real estate activities?

   Election treats all rentals as one activity for material participation. Made on the tax return; binding for future years.

   Yes, election is on fileNo, but want to make itNo, and don't plan toDon't know