Real Estate Professional Status (REPS)

Hours Tracking Template - Tax Year 2025

Strategic Planning Advisors, LLC | Clinton Township, Michigan

www.reitaxcpa.com

📋 Taxpayer Information

Taxpayer Name:
Spouse Name (if filing jointly):
Tax Year:
Other Occupation(s):

🎯 REPS Qualification Requirements

To qualify as a Real Estate Professional, you must meet BOTH tests:

  • 750-Hour Test: More than 750 hours per year in real property trades or businesses
  • More-Than-Half Test: More than one-half of your personal service hours in all trades or businesses during the year are in real property trades or businesses

📊 Monthly Hours Tracking Log

Month Property Management Tenant Relations Property Viewings Maintenance & Repairs Financial Analysis Total Hours
January 0.00
February 0.00
March 0.00
April 0.00
May 0.00
June 0.00
July 0.00
August 0.00
September 0.00
October 0.00
November 0.00
December 0.00
TOTAL 0 0 0 0 0 0

📈 REPS Qualification Summary

0
0
W-2 job, other businesses
0
0%
Must be >50%
REPS Qualification Status:
✅ 750-Hour Test: NOT MET (Need 750+ hours)
✅ More-Than-Half Test: NOT MET (Need >50%)

📋 Seven Material Participation Tests (for each rental property)

You need to meet at least ONE of these tests for EACH rental property to claim non-passive losses:

  • Test 1: You participate more than 500 hours during the year
  • Test 2: Your participation constitutes substantially all the participation (100+ hours and no one else participates more)
  • Test 3: You participate more than 100 hours AND at least as much as any other individual
  • Test 4: Significant participation activity (100+ hours in multiple activities totaling >500 hours)
  • Test 5: You materially participated in any 5 of the prior 10 tax years
  • Test 6: Personal service activity in which you materially participated for any 3 prior tax years
  • Test 7: You participated on a regular, continuous, and substantial basis (100+ hours; not management)

📝 Activity Log Examples

Date Activity Category Description Hours Property
Add rows as needed for detailed daily tracking

💡 Documentation Best Practices

  • Track in real-time: Log hours weekly (not at year-end)
  • Be specific: Include property addresses, contractor names, tenant names
  • Save supporting documents: Emails, text messages, receipts, invoices
  • Use calendar/smartphone: Google Calendar, phone notes, time-tracking apps
  • Separate personal vs. business: Only count hours directly related to rental activities
  • File the grouping election: Attach a statement to your tax return if grouping properties
DISCLAIMER: This template is provided for educational purposes only and does not constitute tax, legal, or accounting advice. Consult with a qualified tax professional before making any decisions. IRS regulations are complex and subject to change.

Strategic Planning Advisors, LLC provides tax advisory, CFO, and IRS resolution services.

Information provided on this site is for educational purposes only and does not constitute formal tax, legal, or investment advice. Please consult your advisor before making financial decisions.

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