Real Estate Professionals

If you spend significant time in activities related to real estate, you may qualify as a “real estate professional,” which can provide tax benefits.

A passive activity is generally defined as a business activity without a minimum amount of “material participation” by the taxpayer. A taxpayer is not allowed to deduct losses from passive activities in excess of income from passive activities. Any unused losses from passive activities must be carried forward until there are gains from passive activities, or until the passive activities that generated the losses are disposed of.

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