re: "materially participation" in a real estate activity ....

[taxstar]

I am confused as to whether my wife/I "materially participate" in our real estate rental activities.

Background: we have a rental property where my wife and I manage all rental related activity (repairs, picking renters, hiring contractors to do work, etc.).  My wife is also a real estate professional (she works as a full-time real estate attorney).

QUESTION: does she need to spend more than 50% of her time on real estate activities IN GENERAL or specific to doing work for our rental property in order to qualify for "material participation" per the IRS definition?

[MarilynG1]

Yes, you both materially participate in your rental activity (100 hours per year), based on the activities you mention.

Yes, you wife would be considered a 'real estate professional' based on the 50% of time rule.  These are two separate things.  

Once you qualify as a real estate professional, then the rental properties in which you materially participate are not subject to the passive activity loss rules.

Here's more info on Passive Activity Losses.

@taxstar