Just to be totally clear, to be considered a Real Estate Professional you have to meet both tests, not just one or the other. I don't know if you also have other employment or business interests, but the first part is often the hardest one to meet for someone who has other work outside of real estate.
Documenting the hours you spend in real estate and any other employment or business is definitely a good idea in case of audit.
When you are entering your rental property information in TurboTax, there will be a question that asks "are you a Real Estate Professional?" If you qualify, you can check this box to indicate that yes, you are.
Passive income and nonpassive income are taxed at the same rate, so unless you have other passive income you are offsetting with the rental income, there would likely be no immediate change to your tax situation from being a Real Estate Professional and having a rental that turns a profit.
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