REPS is one of the most powerful — and most audited — deductions available to serious real estate investors. This confidential diagnostic reveals in minutes where your position stands against the IRS's two tests.
For educational purposes only. Results depend on your specific facts and circumstances. Always consult a qualified CPA before acting.
If you are married, REPS hours cannot be combined between spouses. One spouse must independently satisfy both the 750-hour test and the majority-time test on their own. A spouse's hours cannot be added to yours to help you qualify.
Select every real estate activity that applies to you, then enter your estimated hours for each one. Only hours you personally performed count.
The following types of hours are not automatically qualifying under REPS rules. Whether they count in your specific situation depends on the facts and circumstances. Do not include them in your totals without discussing them with your CPA first.
Including hours that do not qualify can put your REPS claim at serious risk in an audit. When in doubt, leave them out and ask your CPA.
Are you an employee in someone else's real estate business?
Are you married?
REPS is one of the most powerful tax strategies available to real estate investors — and one of the most audited. Get a professional review of your situation before you file.
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