Real estate professional information

To class activities for a real estate professional, select the passive activity code
4 Real estate professional
in the activity (such as the Rent-2, 4835-2, K1T-3, K1-2 screens). Income/losses from activities coded as real estate professional are treated as non-passive. UltraTax CS will generate a statement summarizing all activities that have a passive activity code
4 Real estate professional
.
According to IRS publication 925, a taxpayer is a qualified real estate professional if they meet the following requirements:
  • More than half of the personal services performed in trades or businesses during the tax year occurred in real property trades or businesses in which you materially participated, and
  • You performed more than 750 hours of services during the tax year in real property trades or businesses in which you materially participated.
You can group together rental real estate activities coded with a passive activity code for real estate professionals into a single activity under regulation 1.469-9(e)(1). Go to the Elections folder on the
Elect
screen. Select
Selection number 44 Rental R/E Professional
from the
Election No.
dropdown list.
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