Hi everyone, I’ve been getting different opinions on this from my CPA and other tax advisors, so I’m hoping to hear from the forum. I work full-time as a W2 employee in capital markets for a real estate investment firm (no equity in the firm). Alongside this, I do 1099 contracting work sourcing deals and conducting due diligence for other firms. My 1099 income is now three times my W2 income.
Can I qualify for Real Estate Professional (REP) status through my 1099 work, even though I’m also employed as a W2?
>Can I qualify for REP status through my 1099 work even though I’m employed as a W2?
Why are you pursuing REP status? Your work seems related to real estate finance or investing rather than directly being a real estate professional. What’s your goal with this?
Addison said: @Poe
I’m talking about losses from deals or partnerships. When I find deals for GPs, I usually reinvest part of my fee into the partnerships.
This sounds like you’re adding new details. I’m guessing you don’t materially participate in each of these partnerships?
How many hours per year do you spend on real estate activities, excluding (a) time at your W2 job and (b) time spent as an “investor” in the partnerships?
It’s tough to qualify for REP when you have a full-time W2 job that doesn’t count because you don’t own enough of the company.