CalculateRealEstateROI

Tax Concepts

Real Estate Professional Status (REPS)

Tax designation allowing rental losses to offset active (W-2) income.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

750+ hours in real estate, materially participating, more than any other activity.

Examples

  • REPS spouse claims $80k cost-seg loss against W-2 income.

Common mistakes

  • Claiming REPS without contemporaneous time logs.

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