Posted by John K. Haslach, CPA, MST on March 02, 2005 at 18:31:33:
Sorry! Few things in tax are simple. Good luck!
Professional status - Posted by Annmarie
Posted by Annmarie on February 28, 2005 at 12:51:18:
Can someone explain this exception to the Real Estate Professional classification? This is stated on the homepage of this site.
I don’t read this in the IRS publication 527 explanation. Would love to know specifics:
"Does a company engaged in a real estate activity in which you own 5% or more of the company currently employ you?
*If the answer is yes, you are a Real Estate Professional."
Thanks!
Re: Professional status - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on March 02, 2005 at 16:23:05:
Over 1/2 of your personal services must be performed in real property trade or business and more than 750 hours. If you are an employee of a real property trade or business, you cannot count those hours worked toward fullfilling the requirements unless you own at least 5% of the company.
Re: Professional status - Posted by Annmarie
Posted by Annmarie on March 02, 2005 at 16:29:34:
Thanks, that’s the way I read the irs info also.
The article I referenced from this site is misleading… it implies merely by owning 5% of a real property business you qualify for professional status. (I wish!)