What is Real Estate Professional (REP) status?
REP status is an IRS designation that allows real estate investors to deduct unlimited passive losses against their W-2 income. To qualify, you must spend 750+ hours annually in real estate activities and have real estate be your primary profession. PropTrax helps you track and document these requirements automatically.
How does PropTrax help me achieve REP status?
PropTrax automatically tracks your time at properties, travel between properties, and real estate-related activities. The app provides real-time progress toward your 750-hour goal, intelligent projections, and comprehensive documentation that exceeds IRS requirements for REP qualification.
What activities count toward the 750-hour requirement?
IRS-qualifying activities include property management, maintenance, tenant relations, property inspections, market research, meeting with contractors, property showings, and administrative work. PropTrax automatically categorizes these activities and ensures proper documentation for each hour tracked.
Can PropTrax guarantee REP status approval?
While PropTrax provides industry-leading tracking and documentation tools, final REP status determination is made by the IRS and your tax professional. However, our users have a 94% success rate in achieving REP qualification, and our documentation exceeds IRS requirements for audit protection.