This is what I'm trying to determine. Here's my situation, I own a real estate company that bought an office building and spent most of last year refurbishing the property. I spent well over the 750 hrs actively managing the property including collecting rents, maintenance/property management, showing the property and vetting potential renters. I also have a guy who works for me full time doing the books and looking for the next property and helping manage this property.
I also run an engineering services company that I spend more time with - 1500 hrs last year. The engineering company is located in the office building and pays rent to the real estate company.
It seems like I could qualify as a real estate professional but if the passive loss rolls forward and offsets future passive income, which I expect from the rental activities this year and beyond, I rather not raise any concerns. On the other hand, I don't want to miss-step if I am truly required to identify as a real estate professional.
Thanks for your advice!
