Solved: 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?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
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
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

View solution in original post

2 Replies
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

View solution in original post

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 🙂
Dynamic Ads
v
Privacy Settings