226598
If I have a property manager, can I claim rentals as active income? I looked it up on IRS site. There are 3 requirements: spend 750 hours a year for work on the property / managing the property, have real estate pro license... and something else. I have license but it is expired right now. I am managing and taking decisions. I am approving tenants and approving repairs. All payments for repairs come from my business account for rentals. Monthly rent is issued by tenant on my business account, not the property manager. After the rent check was issued, property manager receives his monthly fees for the services provided. Can I claim the rentals as active income in this situation?
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Yes. You are active. but your rental is still considered passive income.
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