How to Qualify for Real Estate Professional Status (REPS) – FULL GUIDE

Summary

This video explains the "Real Estate Professional Status" (REPS) and its tax benefits for investors. To qualify, one must spend over 50% of their personal service time in a real property trade or business, actively participate in at least 750 hours per year, and materially participate. The video highlights that if a married couple files jointly, only one spouse needs to qualify for REPS to use real estate losses against W-2 income. It also touches on how short-term rentals (average stay of 7 days or less) can be a way to offset active income if materially participating.