Comments on: Can owning 1 or 2 rental property qualify you as a real estate professional.?

By: Mark C

Mark C — Thu, 04 Feb 2010 05:28:07 +0000

I would hire a good accountant to figure out the best tax breaks that come with owning real estate.

The title of Real Estate Professional has nothing to do with owning property and getting the tax benefits.

By: Trouble

Trouble — Thu, 04 Feb 2010 05:19:51 +0000

You report your rental income and your rental expenses (interest, taxes, repairs, utilities, depreciated property & improvements).

If your expenses are more than your income, you have a loss and it is deducted from your taxable income.

You do not have to be a real estate professional to do this, just own the properties.

http://www.irs.gov/taxtopics/tc414.html

http://www.irs.gov/businesses/small/industries/article/0,,id=98895,00.html

http://taxes.about.com/od/taxhelp/a/Schedule_E.htm

http://taxes.about.com/od/income/qt/Schedule_E.htm

By: bud68

bud68 — Thu, 04 Feb 2010 04:57:59 +0000

No. Owning rental properties does not make you a “real estate professional.” But claiming rental income and expenses on your taxes does not require one to be a “real estate professional.”

By: ?

Thu, 04 Feb 2010 04:24:06 +0000

You cannot have losses due to depreciation of the property unless you sell it.