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No Loss Limit for Real Estate Professionals and
Spouses?
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Real Estate Investors qualify as "real estate professionals" if they spend at least 750 hours per year on their investment activities. A real estate sales license is not required and either spouse can qualify. Real estate brokers, realty sales agents, property managers, builders, contractors and leasing agents are all considered real estate professionals if they spent 750 hours on real estate business.
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For
Example: |
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Say your Adjusted Gross Income (AGI) is $160,000, and as a result, you are not entitled to any
rental investment loss deductions because your AGI exceeds $150,000.
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However, if your spouse manages your real estate properties and spends more than 750 hours annually supervising the properties, making management decisions, inspecting properties, and supervising property sales and exchanges, then your spouse qualifies as a "real estate professional".
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The result is that you and your spouse can claim unlimited property loss deductions from your properties because one of you qualifies as a "real estate professional."
To learn
how to take control of your Real Estate and
Taxes, check out RealTaxTips at
TReXGlobal.com. |
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