Real estate education course time for Material Participation Rule

[fkhalilz]

In 2018, I spent a great number of hours to complete 6 real estate courses required for the real estate license in Texas thru an accredited college. However, I wrote and passed the license exam in 2019.

Do the hours spent in 2018 on the Texas real estate license courses count towards the 750 hrs Material Participation rule for rental properties I own?

[JohnW15 · Accepted solution]

Unfortunately, these hours wouldn't count towards the Material Participation Rule's 750-hour minimum.

The 750-hour rule states that "you performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated."

Your coursework wouldn't count as "services" in real property trades or business.

Please see the IRS's Publication 925, Passive Activity and At-Risk Rules, for more information.

[Edited 3|17|2020 11:15 am]