To be a real estate professional, a taxpayer must provide more than one-half of his or her total personal services in real property trades or businesses in which he or she materially participates and perform more than 750 hours of services during the tax year in real property trades or businesses.
The recent U.S. District Court case Brendan G. Johnson et ux. v. United States; No. 2:19-cv-00674 decided that time spent studying for a real estate exam did not count toward satisfying real estate’s 750-hour threshold. As such, the defendant’s tax deductions for real estate business losses were disallowed on the basis that the taxpayer was not actually a real estate professional.
Theoretically, if your education and research hours directly impact the day-to-day operations of your business, they can be included as participation hours.
In Hailstock v. Commissioner, T.C. Memo 2016-146, the taxpayer owned numerous properties, didn't have outside employment, worked over 40 hours per week on stated properties, and used substantial amounts of her own resources to further her business.
Per the court case, Hailstock's duties included:
checking messages for work orders, purchasing materials and cleaning supplies, supervising workers doing rehabilitation work, meeting with and conducting background checks on prospective tenants, executing leases, handling complaints regarding existing tenants, collecting rent payments from tenants, searching for new properties to purchase, andtaking real estate classes for continuing education.
The Tax Court didn’t comment on whether searching for new properties or taking real estate classes were participation hours. However, we feel it’s safe to say that because the taxpayer was running his rental business full-time and participating in a significant manner, the education and research hours likely qualified as participation hours. Additionally, the “education” hours the taxpayer logged were to maintain his real estate license… an important variable to see continuity in a real estate agent’s business.
The Tax Court didn’t comment on whether searching for new properties or taking real estate classes were participation hours. However, we feel it’s safe to say that because the taxpayer was running his rental business full-time and participating in a significant manner, the education and research hours likely qualified as participation hours. Additionally, the “education” hours the taxpayer logged were to maintain his real estate license… an important variable to see continuity in a real estate agent’s business.
Context matters. Court being silent on a matter could mean one way or the other.
frankly I don't think podcast is personal service.
Continuing education counts as personal service because it is required to maintain a license, which is defintely a personal service to client.
Listening podcast is not a personal service to anything. Researching could be counted if the research is related to evaluation of deals, that is defintely a personal service.
1. 买房。看房，下offer，贷款，最少20小时。按5个房子算100小时。
2. 装修房子：设计，讨论和查看进度。每个房子起码100小时。一共500小时。
3. Property manangement: 每个房子算30小时，1300小时
4. 出租房报税：每个房子4小时。 170小时。
5. 投资论坛灌水, 学习, 听podcast：365小时。
总共：2435小时。合理吗？
To be a real estate professional, a taxpayer must provide more than one-half of his or her total personal services in real property trades or businesses in which he or she materially participates and perform more than 750 hours of services during the tax year in real property trades or businesses.
You'll need detailed log. Not just average estimates.
楼下那位说工作量不用小时计算，无法量化，这个是税法问题。
你同意工作量是按小时计算，但是具体记录是否可信，这个是证据问题。要看你的logbook。不过查税的一看到你的税单里面有43个房子，可能就不会来惹你了。
40x52-80 holidays=2000
2000-80 paid time off=1920?
The recent U.S. District Court case Brendan G. Johnson et ux. v. United States; No. 2:19-cv-00674 decided that time spent studying for a real estate exam did not count toward satisfying real estate’s 750-hour threshold. As such, the defendant’s tax deductions for real estate business losses were disallowed on the basis that the taxpayer was not actually a real estate professional.
https://www.pbmares.com/new-court-decision-on-deducting-real-estate-losses-disallows-continuing-education/?
Can Education And Research Hours Ever Count?
Theoretically, if your education and research hours directly impact the day-to-day operations of your business, they can be included as participation hours.
In Hailstock v. Commissioner, T.C. Memo 2016-146, the taxpayer owned numerous properties, didn't have outside employment, worked over 40 hours per week on stated properties, and used substantial amounts of her own resources to further her business.
Per the court case, Hailstock's duties included:
checking messages for work orders, purchasing materials and cleaning supplies, supervising workers doing rehabilitation work, meeting with and conducting background checks on prospective tenants, executing leases, handling complaints regarding existing tenants, collecting rent payments from tenants, searching for new properties to purchase, and taking real estate classes for continuing education.The Tax Court didn’t comment on whether searching for new properties or taking real estate classes were participation hours. However, we feel it’s safe to say that because the taxpayer was running his rental business full-time and participating in a significant manner, the education and research hours likely qualified as participation hours. Additionally, the “education” hours the taxpayer logged were to maintain his real estate license… an important variable to see continuity in a real estate agent’s business.
The Tax Court didn’t comment on whether searching for new properties or taking real estate classes were participation hours. However, we feel it’s safe to say that because the taxpayer was running his rental business full-time and participating in a significant manner, the education and research hours likely qualified as participation hours. Additionally, the “education” hours the taxpayer logged were to maintain his real estate license… an important variable to see continuity in a real estate agent’s business.
Context matters. Court being silent on a matter could mean one way or the other.
这可不可以算Education的一部分。
You have the burden of proof. There are assumptions that things you paid for is generally worth it. Not sure about free stuff.
Continuing education counts as personal service because it is required to maintain a license, which is defintely a personal service to client.
Listening podcast is not a personal service to anything. Researching could be counted if the research is related to evaluation of deals, that is defintely a personal service.
remember the law was made before podcast. How about reading "Rich Dad, Poor Dad"? Some thinks it's bible, some thinks it's a scam.
I seriously doubt it.