July 5, 2023

Tax Benefits For Real Estate Professionals

Are you a real estate professional looking to maximize your tax benefits? Here’s a couple of tax benefits you may not be aware of!

Loss Can Be a Gain!

Qualifying real estate professionals get two special exceptions that are tax beneficial:

  • Losses greater than income can still be deducted
  • Rental real estate losses can exceed the $25,000 limit

Hard Work Pays Off

In order to be considered a “real estate professional”, you must meet two IRS requirements.

  • More than half the personal services you performed in all trades or businesses during the tax year were performed in real property trades or businesses in which you materially participated, and
  • You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.

Material participation has power when it comes to unlocking these tax benefits. You’ll need to read the attached to find out more. Want to know more about these tax beneficial opportunities? Read the article below!

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Melissa Calwell

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