Discussion:Qualifing as a realestate professional
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Discussion Forum Index --> Tax Questions --> Qualifing as a realestate professional
| 28 February 2006 | |
| If a person has approximately 50 unit rentals in 5 different locations and keeps all records, does everything needed physically, to keep the property in income, would this not be a "Realestate Professional"? It makes a big difference in the way depreciation is handled for the property. | |
| 28 February 2006 | |
| thanks for asking. the person can not sell realestate professionally. the person owns the property, and completely controls it. also has a business license given by the state for rental income endeavours. i dont know if that is enough to give the person special consideration with passive and nonpassive income. | |
| 8 March 2006 | |
| She/he is qualified as a real estate professional if the following conditions are met:
She/he performed more than 750 hours of services in real property businesses AND more than half of the personal services (non-employee services) performed were in real property trades or businesses in which she materially participated. | |
| 9 March 2006 | |
| I have a client with 13 rentals that he personally owns and does all the bookkeeping etc on. He also sells real estate and manages other rentals that he does not own.
I say Sch E on his personal rentals. Sch C on the sales and management of others rentals for which he is a licenses real estate professional. He does have an LLC but each of the endeavors are considered separate businesses. Anyone disagree with my handling of this? Could you enlighten me? | |
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