Not recognizing me as a Real Estate Professional.

[dhamid01]

I have been checking the box for more than 750 hrs/year and the program will qualify me as a professional real estate, but now with 2017 it's not recognizing me.  

[MinhT · Accepted solution]

Spending more than 750 hours in real estate alone is not sufficient to qualify as a real estate professional. You need to pass all the following four tests.

In Turbotax, you need to check both boxes saying that you spend more than 750 hours a year actively involved in real estate and that you spent more than 50% of your work-related time involved in real estate

You are a real estate professional if all of the following are true:

 - You materially participated in a real property trade or business.
 - More than half of your time is involved in real estate activities during the year.
 - You materially participated for more than 750 hours in this business.
 - You materially participated in each rental real estate activity.

A real property trade or business is any business that involves property:

 - Development
 - Construction
 - Redevelopment
 - Reconstruction
 - Acquisition
 - Conversion
 - Rental operation
 - Management
 - Leasing
 - Brokerage

[rad1530]

where are the boxes that need to be checked to answer the questions above?

[peggytate]

Excellent response.  Thank you!

TurboTax should clarify that both real estate professional questions should be answered and tell the user why they were not considered a professional if they don't qualify.

[tagteam]

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@peggytate wrote:

TurboTax should clarify that both real estate professional questions should be answered and tell the user why they were not considered a professional if they don't qualify.

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The program does provide the relevant information in the On Demand Tax Guidance (see screenshot).

Frankly, if every user took the time to actually read the screens and guidance, there would be far fewer questions on this board and far fewer user input errors. 

[AmeliesUncle]

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@tagteam wrote:

Frankly, if every user took the time to actually read the screens and guidance, there would be far fewer questions on this board and far fewer user input errors. 

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While I agree, historically those screens tend to have errors, only give a partial explanation without factoring in some circumstances and/or be outdated.  

[Critter-3]

And for those who need more information on a subject not covered well by the DIY program "learn more" links then they are required to seek out the information themselves elsewhere  since they are taking on the responsibility of preparing their own returns.  All of the DIY programs I have played with are aimed at the common user with an uncomplicated return.  Uncommon items are not handled well by any of them and if the user is not knowledgeable in the subject matter this is the time to seek out local professional assistance or upgrade to the LIVE option.

[appiaec98]

My wife and I have some properties which are in our personal names (both names on the title) and some properties in different LLCs where we both are partners and third person is one of my kids.

As a Real Estate Professional how do show the hours expended on each of those properties on Schedule E?  This year we have expended over 1600 hours on these properties.

[Irene2805]

It is not necessary to enter the hours you have spent on each property in your tax return.  Just keep a record in case the IRS asks for it. 

In TurboTax, when going through the interview for Schedule E, you will see the screen, Let's see if you're a real estate professional.  Mark the boxes that apply:

• I spend more than 750 hours a year actively involved in real estate (sales, management, etc.) and I have complete records for this time. 
• I spend more than 50% of my work-related time involved in real estate.

[tagteam]

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@appiaec98 wrote:

My wife and I have some properties which are in our personal names (both names on the title) and some properties in different LLCs where we both are partners and third person is one of my kids.

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Please consult, in-person, with a local tax professional. 

It appears as if at least one of your LLC is a multi-member LLC which would require that a Form 1065 be filed and K-1s issued to the members thereof.