A real estate professional is the not the same thing as being a realtor.
You are considered
to be a real estate professional (i.e., in a real property trade or business)
if:
1)
more than one-half of the personal services you provided during the year were
performed in a real property trade or business in which you materially participated; AND
2) the number of
hours in which you materially participated in this real property trade or
business was more than 750 hours; AND
3) you must
materially participate in each rental real estate activity unless you filed an
election to group all rental real estate activities as one (and materially
participate in that activity).
A "real
property trade or business" means any real property development,
redevelopment, construction, reconstruction, acquisition, conversion, or rental
operation, management, leasing, or brokerage trade or business.
Personal services
performed as an employee are not treated as being performed in a real property
trade or business unless you are a more than 5% owner of the trade or business.
For joint return
purposes, the eligibility requirements are considered met if either you or your
spouse separately satisfy the requirements.
