Victor Vickery - General Rules for a Real Estate Professional

Nevertheless, it is a common misconception that qualifying as a real estate professional makes the leasing activities of the taxpayer impassive. This is not the case; rather, the misconception that all rental operations are passive regardless of the extent of involvement has merely been resolved by a taxpayer who qualifies as a real estate professional. Victor Vickery is one such professional whose work never fails as a real estate entrepreneur. In order for the rental activities of the real estate professional to become non-passive activities, the taxpayer must establish that, in relation to the rental activities, he or she has met the requirement of material participation.

 

Only those rental activities in which the real estate professional is significantly involved are non-passive activities. Importantly, the law requires that material participation in each separate rental operation must be identified by a competent real estate professional. An exemption is given, however, by which the taxpayer can elect to combine all interests in rental real estate for the purpose of calculating the participation of materials.