SusanY1
Expert Alumni

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Yes, this is correct.  When actively employed and working as a real estate agent, one is considered a professional even if commissions haven't been earned yet.  The hours/percentage of income test does not apply in the case of working as a real estate agent.  

The definition listed above applies in the context of rental income from propety and its associated expenses, which is reported on Schedule C rather than Schedule E when it is received by a real estate professional as defined above.   

@sumodog123 

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