Definition of Real Estate Professional?

[DEV56]

Since retirement over a year ago my wife and  I have been renovating our rental units, doing the work ourselves or contracting as needed. Does working 2-3 days a week (8+ hrs per day) on this qualify us as real estate professionals for tax purposes?  The rental property is an LLC in Missouri with us as owners.

If so does having a calendar record of the days we worked count as documentation of our hours?

We also have documentation of materials and contracted work for each unit renovated.

[MinhT1]

Spending more than 750 hours in real estate alone is not sufficient to qualify as a real estate professional. You need to pass all the following four tests.

In Turbotax, you need to check both boxes saying that you spend more than 750 hours a year actively involved in real estate and that you spent more than 50% of your work-related time involved in real estate.

You are a real estate professional if all of the following are true:

 - You materially participated in a real property trade or business.

 - More than half of your time is involved in real estate activities during the year.

 - You materially participated for more than 750 hours in this business.

 - You materially participated in each rental real estate activity.

A real property trade or business is any business that involves property:

 - Development

 - Construction

 - Redevelopment

 - Reconstruction

 - Acquisition

 - Conversion

 - Rental operation

 - Management

 - Leasing

 - Brokerage