My wife is a real estate agent, who I file a joint return with. We have two residential rental properties. Turbotax asks if rentals qualify as a trade or business. Do rental activities qualify for this as she is materially active as a real estate agent / professional?
Yes, rental properties do qualify as a trade or business. Owning rental property qualifies as a business if you do it to earn a profit and work at it regularly, systematically, and continuously.