real estate professional

Also found in: Acronyms.

real estate professional

Usually refers generically to a trained and licensed person who makes his or her living in some aspect of buying,selling, or managing real estate.The IRS has a specific definition applicable to whether one is exempt from the passive activity rules. For IRS purposes, a real estate professional is any person who meets the following requirements:

1. More than half of the personal services the taxpayer performed in all trades or businesses during the tax year were performed in real property trades or businesses in which he or she materially participated.

2. The taxpayer performed more than 750 hours of services during the tax year in real prop- erty trades or businesses in which he or she materially participated.

References in periodicals archive ?
The personalized mobile technologies HP provides real estate professionals help them productively serve their clients.
A grouping of this type is not allowed when trying to meet the real estate professional rules noted above.
In 1996, Kosonen did the same thing, except he also attached a statement indicating that he qualified as a real estate professional and elected to treat all his rental real estate activities as one activity.
Rental real estate cannot be aggregated with nonrental real estate operations; thus, if X spends 600 hours developing real estate and 200 hours on each of his four rental real estate activities, he is not a real estate professional.
Therefore, taxpayers who qualify as real estate professionals and do not expect to spend more than 500 hours a year on a particular rental real estate activity, but who are willing to serve as general partners (either individually or through a passthrough entity), may wish to consider forgoing use of an LLC in favor of a limited partnership.
If, in any particular year, the taxpayer is not a qualified real estate professional, the election will not have effect for that year.
469(c)(7) allows real estate professionals who meet specified thresholds to determine if their rental real estate activities are passive or active under existing regulations.
14 -- Real estate agents will have the chance to learn the basics of relocation transactions at a "Relocation 101-Assisting Consumers in Corporate-Sponsored Moves" course offered by the National Association of Hispanic Real Estate Professionals 1 p.

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