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Real Estate Professional Test Calculator

REP status unlocks losses. This calculator tests eligibility.

Qualifies REP (1=yes)

1

Total trade hours

1,700

% RE of total

70.59%

How the math works

Tests: RE > 750 hrs AND RE > 50% of total AND material participation per activity (or grouped).

1,200 RE / 500 other = 70.6% RE, passes. 950 material hours on 4 activities = 238 per — passes 100-hr test. Qualifies REP. Losses become active. Major tax planning lever.

How to Use

  1. Enter real estate trade hours.
  2. Enter other trade hours.
  3. Enter material participation hours.
  4. Enter number of rental activities.
  5. Read REP qualification result.

Frequently Asked Questions

Two tests?

(1) More than 750 hours in real estate trades/businesses. (2) More than 50% of total work hours in real estate. Plus material participation in specific rental activities. All three tests required. Married filing jointly: one spouse can qualify alone.

Why matter?

REP status converts rental activity from 'passive' to 'non-passive'. Rental losses become active losses offsetting W-2 income, consulting income, business income. Massive planning opportunity for high-income earners with rental real estate.

Documentation?

Daily log of hours by activity. Specific project records. Meetings, calls, property visits all count. Email records, phone logs. IRS audits contemporaneous documentation. Reconstructed logs after-the-fact generally rejected. Rigorous from Day 1.

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