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If I have a property manager, can I claim active income?

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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2 Replies

If I have a property manager, can I claim active income?

Hello, thank you for reply. If I am correct it is passive income because to call it active income need to work in real estate and do the sells as well in real estate. What means to be real estate pro, who works in this field. Is it correct? If I don't have a property manager, does it change the situation or it does not do much?
KarenW
Intuit Alumni

If I have a property manager, can I claim active income?

Yes. You are active. but your rental is still considered passive income.

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