
Does a Real Estate Agent Always Qualify for Real Estate Professional Status (REPS)?
Real estate agents hear about Real Estate Professional Status (REPS) at networking events, in forums, and in tax strategy guides — and with good reason. When claimed properly, REPS can allow taxpayers to treat rental real estate losses as non-passive, enabling those losses to offset other ordinary income. For some taxpayers this dramatically reduces tax liability. But here’s the important caveat: holding a real estate license alone does not automatically qualify someone for REPS. Many licensed agents incorrectly assume they meet the IRS requirements. In reality, qualifying for REPS depends on the type of activities performed, how much time is spent on those activities, and whether the taxpayer materially participates in rental real estate. This article explains what REPS is,




