I am a professional real estate person and the return and your return will not allow the loss on a rental property?

To qualify as a real estate pro, you must:

• spend more than half (at least 51 percent) of your total working hours during the year working in one or more real property businesses; and
• spend more than 751 hours a year in one or more real property businesses; and
• materially participate in the rental activity and any other real property businesses used to pass the 51 percent and 751-hour tests.

If you are an employee in someone else’s real property business, your time counts toward real estate professional status only if you own more than 5 percent of the business. If you work as an employee for a corporation, you must own more than 5 percent of your employer’s outstanding stock.