The IRS classifies someone as a real estate professional if they spend more than half of their working time—and at least 750 hours per year—on rental real estate activities. These activities include:

• Property management

• Property acquisition

• Property construction

• Property development

Understanding how real estate professional status affects your taxes is essential for maximizing profitability. Start by asking yourself:

• Do you currently own rental property or plan to rent property in the near future

• If you rent property, what type of investor are you

• Do you qualify as a real estate professional

• Are you considered a passive investor

Your answers help determine which deductions and tax strategies you can use to reduce taxable income while benefiting from ongoing appreciation and cash flow.

Our real estate and rental property tax services at help you navigate IRS rules, understand key definitions, and identify the deductions available for your real estate investments. Our team ensures you make informed, strategic decisions that support long‑term financial success.