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Real Estate Professional Status for Health Care Provider

Edna from Texas asks the following question: I am a healthcare provider and if I work full time as a health care provider and work 15-20 hours a week on my real estate business would I be considered a real estate professional?

A: Perhaps. The rule is that you must spend more time on your real estate than you do in your other business/job. So, in your case, if you spend 20 hours per week in real estate, then you would have to spend less than 20 hours per week in your health care business. You should easily meet the 750 hour rule if you make the proper election to aggregate your properties (for more on this, go to http://www.ProVisionWealth.com/wealthstrategyu).

In addition, you have to make sure that at least some of your real estate activity pertains to operations (e.g., property management) and not just investing activities (e.g., bookkeeping).

Warmest regards,

Tom

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This page contains a single entry from the blog posted on February 9, 2008 6:29 AM.

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