Tax Playbook · Business owners
Real estate professional status
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Rental losses normally can only offset rental income — not your salary. But if you log 750+ hours a year in real estate work AND it is more than half your total working time, you can qualify as a ‘real estate professional.’ Then your rental losses can offset your W-2 salary too — for example, a $30,000 rental loss at a 24% tax rate saves you about $7,200. Warning: the IRS audits this one a lot, so log every hour and prove you actively run the rentals.
Good for: Landlords who spend most of their working time on real estate.
Learn the basics
Recent articles & guides
- Real Estate Professional Status Rules & Requirements — Pasquesi Partners (CPA)
- Qualify for Real Estate Professional Status (REPS) — Zhou Agency (real estate tax CPA)
- How Rental Income Is Taxed in 2026 — CPA Solutions
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.