To be a real estate professional able to deduct losses from real estate activities without regard to the passive activity loss limitation, a person must spend more than 750 hours a year and more than half of all work hours materially participating in a real estate (e.g., as a broker, landlord, builder). Can a professional, such as a dentist? It is possible where the dentist can show he spent more time in real estate than his dental practice.
Barbara Weltman
Big Ideas for Small Business, Inc.
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