Arete TOOLS · REAL ESTATE

REPS Eligibility Tool

Evaluate the real estate professional hour thresholds and the separate rental participation requirements.

01 · One individual’s working hours

Person being evaluatedDo not combine spouses’ hours for the REPS thresholds.

Nonemployee real property business hoursDevelopment, construction, acquisition, rental, operation, management, or brokerage. Exclude investor-only activity.

Real property business hours as an employeeThese count in total working time even when not eligible for the REPS numerator.

Owned more than 5% of the real estate employer?Exactly 5% is not enough. Include applicable constructive ownership.

All other trade/business personal service hoursInclude your non-real-estate employment and self-employment.

02 · Qualifying work & records

Material participation established for the counted real property businesses?Threshold hours must relate to qualifying businesses in which this person materially participates.

Do records reasonably support these hours and activities?

03 · Rental activity review

Material participation established for each rental or valid grouped activity?REPS status alone does not make every rental loss nonpassive.

How are your rental activities evaluated?