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One spouse has W2 $180,000 and the other spouse (husband) only took care of their 10 rental homes ( repair, collecting rents, managed the rental properties full time).
He did not buy or sell any properties in the last 5 years but he did receive W2 in 2017 and no earned income in 2018.
Can he be regarded as "materially participated" in rental business so they could take the losses over $25,000?
Their rental loss is well over $25,000.
I did some research and seems like he has to be a "Real Estate Professional" if so does he have to have a license to be a real estate professional?
Thank you, in advance, if anyone can help me out, please.
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I don't think there is such a license, one to own and manage real estate properties.
Does he meet the 750 hour test?
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All properties are in California (community property state.)
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Review the rules, here is a primer. There is no such thing as a "real estate professional" license:
https://www.thetaxadviser.com/issues/2014/jul/skarbnik-july2014.html
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Whether or not there needs to be a license is a State statute issue. Typically, managing your own property does not require a license. That isn't a tax issue. For example, Montana accepts if you are a lawyer or real estate agent/broker for managing other people's property.
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