How to Qualify for Real Estate Professional Status (REPS) - FULL GUIDE

[@karltondennis]

Subscribe to the channel to help us reach 1 million subscribers!!!

[@brianfolkestad6042]

My Fiance and I are slowly working towards full time Real Estate investing as our daily job. Always trying to learn more about taxes and how it affects our properties and future properties. Thanks for the positive energy and knowledge. Just subscribed to stay informed I've never subscribed to anyone that's saying something. Thanks Boss

[@carolpowell8695]

Great information! We are working on buying our first investment property. My husband has a full-time job & I am a realtor.

[@kat4onelove]

I'm about to get my real estate license. Would this qualify me as a REPS? It's my first time hearing of this and it's exciting to think about

[@arielcolon3051]

This channel is a wealth of knowledge

[@RoxyRentalsSO]

Would the hours I have spent remodeling a house hack (lived in during the remodel), where i took a 6b3b sfr and split it into a 4/2 (currently my primary residence) and an attached 2b2b adu that was placed into rental service in aug 2024, count towards REP hours? Would it be better to move out now that the remodel is complete, for cost seg this year?

[@TheRoundBox]

Always very informative videos, thx for creating and sharing!

[@truehomellc8824]

Does a remodeling contractor qualify for reps? Or if the remodeling contractor built the rental property from raw land and the ground up would that qualify him?

[@nopullbak]

As a real estate professional, can real estate losses offset portfolio income, for example will depreciation expense offset long term or short term capital gains on other investments such as stocks, commodities, forex, crypto, or interest income from bonds or savings accounts?

[@The.Wooski]

Can I work in any field of construction to qualify for REPs ? For example, I install gas main throughout the city, but doesn’t have anything to do with General construction do I still qualify?

[@humbertohernandez828]

I'm purchasing a new house and want to rent out my old house. Can I hire a property management person to deal with the rental and still be able to get tax savings? It's not possible for my wife or I to do the work to qualify as a REP.

[@echin01]

What about depreciation tax recapture upon sale? Even after 1031s, seems like the only way to truly avoid the tax bill is die and step up basis for dependents. Agree?

[@THEtaxstrategists]

YES - and if you do a cost seg and reclassify real property (Section 1250) into personal property (sec 1245), there are real challenges with a 1031 and depending on the replacement property, you may have to recapture the depreciation on the 1245 property - at ordinary rates - PLEASE consult with a tax advisor you can build a relationship with - I would proceed cautiously with KD if I were you

[@LashusJourney]

Very informative

[@TinoMiller]

My grandmother does all of this wither her properties, both her private communities, and her vacant lots and commercial properties ... Nonetheless I only got my license ... She's been doing this for more than 40 years.

[@carissakirk5834]

If I work 14 days a month as a physician, could I qualify for REPS status?

[@THEtaxstrategists]

Karlton - generally accurate information, Good for you. I will just point out that the example couple "saved" $18k of tax. QUERY: Is this enough to make an investment in r/e if otherwise you would not? I suggest NO. Sure, Real estate CAN be a good investment. Especially for your "younger viewers" (say under 40) they should FIRST decide what is a good investment (e.g. real estate, stock market, other) and if they choose real estate, THEN and ONLY THEN, look for ways to minimize taxes. Lastly, unless they do 1031s for decades, they WILL recapture this tax benefit and the recapture rate will likely be much higher than the 22.5% they saved - interested in comments from all and KD!

[@DavidRamirez-lw8lp]

They will only recapture if they sell. What about if the properties are held long term?

[@THEtaxstrategists]

@@DavidRamirez-lw8lp In the "out years" as the mortgage principal is paid down, you will have "phantom income" - meaning taxable income with no /little cash since the principal pay down is not deductible. He and others will say "do 1031s until you die" -really, you are NOW going to stay in real estate forever since you saved some tax in your younger years at probably a lower rate? Then they will say "refinance" but they never address "interest tracing" under IRC 163

[@mercez7625]

How about as a Realtor?

[@kat4onelove]

That's my question too

[@Papichulo6996-i2j]

Is the attorney watching??😂😂

[@THEtaxstrategists]

In this case, I think he is mostly accurate btw (CPA with decades of experience). HE is not really misleading for clicks either (pleasant surprise). However, there is an old saying - "don;t let the tax tail wag the dog" meaning DO NOT do things just to save taxes. Sure, if you otherwise want to invest and manage real estate, go for it and do so as tax efficiently as you can. Way too many people, IMO, chase short term tax savings and will regret it.

[@bngr_bngr]

If Susan gets a divorce from Steven. She will be entitled to most of the real estate assets.

[@jamie5mauser]

Let’s say the husband and wife are both dentists… So the wife is the one who has to quit her job to become the real estate professional? Kinda sexist to assume the man has the better job and the woman is “just a para”

[@isaacspragg5381]

Please please wear a shirt in your size - the sleeve seams are almost on your neck. Good info however. Thanks