Real Estate Professional Status IRS Pitfalls

Real Estate Professional Status IRS Pitfalls

From Dr. Friday Tax Tips by Dr. Friday Tax & Financial Firm

April 9, 2026 · 1 min

About this episode

Dr. Friday discusses the complexities of achieving real estate professional status and the potential IRS pitfalls for taxpayers.

Dr. Friday explains that meeting the 750-hour test alone does not guarantee real estate professional status. She warns that taxpayers with full-time non-real-estate jobs often face IRS disallowance. Transcript G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment. Real estate professional status, wow, this is a big question. I have a lot of people that swear they’re real estate professionals because they put in more than 750 hours. That is only part of it. If you have a full-time job and you want to claim that you’re a real estate professional, you’re gonna find out it doesn’t work. The IRS will disallow it. If you are a licensed real estate person and you’re doing it 24-7 like most of us do our business, sure, you’re a real estate professional. But sometimes there’s pros and sometimes there’s cons. Do you really want to be paying self-employment tax on a rental property? You may have to if you’re treated as a real estate professional. Need help? Go to drfriday.com. You can catch the Dr. Friday Call-in Show live every…

People in this episode

Host: Dr. Friday

Topics covered

  • real estate professional status
  • IRS pitfalls
  • tax advice
  • self-employment tax
  • real estate
  • taxpayer issues

Keywords

  • real estate
  • IRS
  • tax
  • self-employment
  • professional status
  • taxpayer
  • disallowance

Mentioned in this episode

Organizations: Dr. Friday Tax & Financial Firm, IRS

Places: 99.7 WTN, www.drfriday.com

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