Last Updated: August 3, 2026
Real Estate Professional Status Calculator
Two tests decide Real Estate Professional Status under IRC Section 469(c)(7)(B), and you have to pass both in the same year. Most calculators check the first and stop, which is how people end up confident and wrong.
Check both tests
Your W-2 job, your business, consulting — every hour of personal services that isn't real estate. Enter 0 if you have none.
Why the second test is the one that disqualifies people
The 750-hour test is a floor, not a target. The second test requires that more than half of all your personal services be in real property trades or businesses — which reduces to a simple comparison: your real estate hours have to exceed your other working hours.
So if you work a 2,000-hour job, your real target is not 750. It is 2,001. That is essentially two full-time occupations, which is why the common arrangement in married households is for one spouse to carry the W-2 income while the other qualifies — only one spouse needs to pass these two tests.
Both thresholds read "more than," not "at least." Exactly 750 hours does not pass.
If these numbers don't work for you
There is a second route, and for most people it is the easier one. A property with an average guest stay of seven days or less is not a rental activity under Treas. Reg. Section 1.469-1T(e)(3)(ii)(A), so the automatic passive rule never applies and you do not need Real Estate Professional Status at all. You need material participation in the property — commonly more than 100 hours where no one else, including a cleaner or manager, does more.
What this calculator does not do
It checks two thresholds against numbers you type. It does not verify that your hours qualify, that your records would survive an examination, or that you materially participate. Nothing here is tax advice, and you should decide your filing position with your CPA.
Hour counting is where these claims actually fail. If you want the tracking rather than the arithmetic: