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arvoreis
New Member

I am a full time real estate investor and property manager. My wife is a Real Estate Agent. Turbotax says we are not real estate professionals!!! Why?

we worked over 4000 hours in real estate last year actively managing our rentals, investments, renovations, and brokerage. turbotax is saying we are not real estate professions. If we are not I can't imagine who would be. This is a very expensive difference!

please advise, thank you

1 Best answer

Accepted Solutions
RichardG
New Member

I am a full time real estate investor and property manager. My wife is a Real Estate Agent. Turbotax says we are not real estate professionals!!! Why?

You must be able to answer yes to both questions to qualify as a real estate professional.  Only time spent on real estate activities count.  Time spent managing your investment portfolio does not count toward the requirements.  Also, if your wife is a W-2 employee of the real estate firm (this is uncommon), her time doesn't count unless she has an ownership interest in the firm.  

Please follow this link for more information.  https://www.irs.gov/instructions/i1040se/ch01.html#d0e234

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2 Replies
RichardG
New Member

I am a full time real estate investor and property manager. My wife is a Real Estate Agent. Turbotax says we are not real estate professionals!!! Why?

You must be able to answer yes to both questions to qualify as a real estate professional.  Only time spent on real estate activities count.  Time spent managing your investment portfolio does not count toward the requirements.  Also, if your wife is a W-2 employee of the real estate firm (this is uncommon), her time doesn't count unless she has an ownership interest in the firm.  

Please follow this link for more information.  https://www.irs.gov/instructions/i1040se/ch01.html#d0e234

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arvoreis
New Member

I am a full time real estate investor and property manager. My wife is a Real Estate Agent. Turbotax says we are not real estate professionals!!! Why?

thank you so much. I clicked both buttons and my taxes due went down by 25k 🙂
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