I know you mention that in order to be a real estate professional with a W2 job you need to work more in your real estate business than your W2. I have a unique situation. I am a paid firefighter. I work 24 hour shifts with 3 days off in between. We work on average 8 days a month. With the amount of time off I receive on top of that I take about 36 hours a month off. I own 12 properties, I flip properties, and I am a real estate agent with 40 transactions last year. I track my real estate time with toggle. I worked in real estate 200 hours more than my fire department job this year. Will they reject my claim for real estate professional? Or is this something that is logical because of my work schedule? Any input would be welcomed. By the way my CPA says let’s go for it, which I love!! Thanks Jason CT Firefighter
You’re tax return won’t get “rejected” per se. This issue is that if you were ever audited, you would need to prove that you met the hours requirement. The records in the app would probably be sufficient, however the more substantiating documentation (like an appt calendar) the stronger your argument.
Further, it’s probably wise to make the property grouping election. It’s made by attaching a statement to your tax return similar to the following.:
Thank you. I think keeping a calendar in my google drive would be a good back up. Toggle is a great app. Really shows good detail
Thank you for the question. We answered it on today’s show on 2.19.23. Thanks for listening. MJK & MNS