Real Estate Professional Tax Status 2027 Calculator
Determine real estate professional status 2027 — 750+ hours + more than half work time in real estate. Unlocks unlimited rental loss deductions.
Qualifying Tests
Two-prong: (1) 750+ hours in real estate trade/business, (2) More than 50% of personal services in real estate. Must meet BOTH.
Material Participation
Even with REPS status, EACH property needs 100+ hours/year OR you elect to AGGREGATE properties (treats portfolio as one activity).
Spouse Rules
Spouses can EACH qualify. One spouse REPS qualifying transforms partnership treatment. Couple often plans one spouse out of W-2 to qualify.
Audit Risk
Highly scrutinized. IRS demands contemporaneous time logs. Calendar entries + receipts must support claim. No casual hour estimation.
Source: irs.gov Section 469(c)(7) Real Estate Professional Rules. Last updated: May 2026.