W2 & Realestate Professio
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W2 & Realestate Professio (by Libi [NY]) May 13, 2019 2:04 PM
       W2 & Realestate Professio (by LeePookie [IN]) May 13, 2019 4:59 PM
       W2 & Realestate Professio (by elliot [RI]) May 13, 2019 5:03 PM
       W2 & Realestate Professio (by S i d [MO]) May 13, 2019 10:36 PM
       W2 & Realestate Professio (by JB [OR]) May 14, 2019 11:42 AM
       W2 & Realestate Professio (by Libi [NY]) May 14, 2019 11:55 AM
       W2 & Realestate Professio (by JB [OR]) May 14, 2019 12:54 PM
       W2 & Realestate Professio (by Libi [NY]) May 14, 2019 1:25 PM
       W2 & Realestate Professio (by Libi [NY]) May 14, 2019 1:25 PM
       W2 & Realestate Professio (by Marv [IL]) May 15, 2019 8:54 AM
       W2 & Realestate Professio (by don [PA]) May 16, 2019 12:08 AM
       W2 & Realestate Professio (by JB [OR]) May 16, 2019 12:41 AM
       W2 & Realestate Professio (by Small potatoes [NY]) May 16, 2019 1:14 AM

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W2 & Realestate Professio (by Libi [NY]) Posted on: May 13, 2019 2:04 PM
Message:

I am trying to understand is it a good idea to claim myself as a Realestate professional and is it possible at all.

I can take some Realestate classes if needed.

The problem: I will not stop working at my W2 job. I like it and not dreaming to quit.

All management, maintenance and marketing handling by ourselves.

What does it mean: “More than half of the personal services you perform...”?

What tax advantages? --174.203.x.xxx




W2 & Realestate Professio (by LeePookie [IN]) Posted on: May 13, 2019 4:59 PM
Message:

My understanding is a W2 employee cannot qualify for full time RE professional. At least that is what my tax lady said in an email today. She's pretty good --96.31.xxx.xxx




W2 & Realestate Professio (by elliot [RI]) Posted on: May 13, 2019 5:03 PM
Message:

Lee is correct.. Use your significant others as RE Professional if you file tax jointly.. --71.232.xxx.xxx




W2 & Realestate Professio (by S i d [MO]) Posted on: May 13, 2019 10:36 PM
Message:

If you want to claim the 20% QBI tax exemption, you do not need to be a Real Estate Professional. All you need is to document 250 hours per year, and my understand is your contractors' hours also count. So if that's your goal and you have at least 5 units you could meet that standard.

However, I'm not sure that's your goal. You mentioned tax savings, but that's it. Why do you want to be considered a Real estate professional? --173.20.xxx.xxx




W2 & Realestate Professio (by JB [OR]) Posted on: May 14, 2019 11:42 AM
Message:

As already mentioned, it is nearly impossible to legitimately claim the RE Professional designation when already working a W2 job.

And if you are doing it to try to bypass the $25k annual loss limitation regarding your RE losses...well consider yourself waving an IRS audit red flag. --24.20.xxx.xxx




W2 & Realestate Professio (by Libi [NY]) Posted on: May 14, 2019 11:55 AM
Message:

Thank you, everyone.

Some account asked me why I am claiming myself as a Realestate professional and I was studying a subject why.

Does it make sense to have a part time job and clime a Realestate professional status? --174.203.x.xxx




W2 & Realestate Professio (by JB [OR]) Posted on: May 14, 2019 12:54 PM
Message:

I don't think so Libi. What is it you're trying to accomplish with that particular designation? --24.20.xxx.xxx




W2 & Realestate Professio (by Libi [NY]) Posted on: May 14, 2019 1:25 PM
Message:

JB, for now I just studying the subject.

For now my husband is working two jobs with not the best pay. I was thinking if he can drop one of the jobs and become a Realestate professional he can work less and it will be the same money at the end. (He didn’t know it yet and will be presented with the new plan only It will make sense).

For example: if his salary is $30,000 and 1/27 of the mortgage is approximately the same. Does it make sense to drop the job and write off the appreciation?

--174.203.x.xxx




W2 & Realestate Professio (by Libi [NY]) Posted on: May 14, 2019 1:25 PM
Message:

JB, for now I just studying the subject.

For now my husband is working two jobs with not the best pay. I was thinking if he can drop one of the jobs and become a Realestate professional he can work less and it will be the same money at the end. (He didn’t know it yet and will be presented with the new plan only It will make sense).

For example: if his salary is $30,000 and 1/27 of the mortgage is approximately the same. Does it make sense to drop the job and write off the appreciation?

--174.203.x.xxx




W2 & Realestate Professio (by Marv [IL]) Posted on: May 15, 2019 8:54 AM
Message:

Libi-

Being a real estate professional for IRS purposes only entitles you to 1 major benefit. You can deduct all of your real estate losses.

In other words, in order for you to benefit from this designation, you would probably need multiple rental properties that produce losses in excess of $25,000.

Perhaps another way to get away from 2 part time jobs would be to take classes in real estate investing or classes to become a real estate salesman. This may help alleviate your situation. --173.15.xx.xxx




W2 & Realestate Professio (by don [PA]) Posted on: May 16, 2019 12:08 AM
Message:

Marv, you are ignoring the QBI benefits. --73.141.xxx.xx




W2 & Realestate Professio (by JB [OR]) Posted on: May 16, 2019 12:41 AM
Message:

Don, the QBI benefits are not affected from what I understand. --24.20.xxx.xxx




W2 & Realestate Professio (by Small potatoes [NY]) Posted on: May 16, 2019 1:14 AM
Message:

The re professional designation is not as easy as taking some Classes. Even being a re agent wouldn't qualify you, nor is being an investor. You have to be the day to day decision maker, not a passive investor and not have another job. For that you get to actively deduct your losses and you can't look like you dabble in re as a hobby and never make money. I myself don't understand how safe harbor rules interface w this designation. You would think in nys there would be a place to study re tax law. Haven't found one yet. --99.203.xx.xx



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