Skip to content
Tax Tips 00:01:00 Audio disclaimer

From the archive: tax rules, deadlines, and show schedules reflect the original recording and may have changed.

Dr. Friday Tax Tips - One Minute Moment

Real Estate Professional Status IRS Pitfalls

0:00 01:00

Dr. Friday explains that meeting the 750-hour test alone does not guarantee real estate professional status. She warns that taxpayers with full-time non-real-estate jobs often face IRS disallowance.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Real estate professional status, wow, this is a big question.

I have a lot of people that swear they’re real estate professionals because they put in more than 750 hours. That is only part of it.

If you have a full-time job and you want to claim that you’re a real estate professional, you’re gonna find out it doesn’t work. The IRS will disallow it.

If you are a licensed real estate person and you’re doing it 24-7 like most of us do our business, sure, you’re a real estate professional. But sometimes there’s pros and sometimes there’s cons.

Do you really want to be paying self-employment tax on a rental property? You may have to if you’re treated as a real estate professional.

Need help? Go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Ask Dr. Friday

Have a tax question of your own?

Send it in. Questions may be answered on an upcoming episode or video, first name only.

Send Dr. Friday a message

Tell us a little about what you need and we will get back to you quickly.

Book Dr. Friday for your event

Share the date, audience, and topic you have in mind. We will respond as quickly as possible.

Please give us as many details as possible about your event, and any questions that you may have for Dr. Friday. We will respond as quickly as possible. Thank you!

Try “IRS letter”, “1099”, “home office”, or “bookkeeping”.