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How to Obtain “Real Estate Professional Status”: A Major Tax-Saving Opportunity

American Apartment Owners Association

At its core, this status allows investors to reclassify their rental property activities from passive to non-passive. Without REPS, the depreciation and other losses from your rental properties would only offset income from other passive investments. Normally, passive losses can only offset passive income.

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How to Obtain “Real Estate Professional Status”: A Major Tax-Saving Opportunity

American Apartment Owners Association

At its core, this status allows investors to reclassify their rental property activities from passive to non-passive. Without REPS, the depreciation and other losses from your rental properties would only offset income from other passive investments. Normally, passive losses can only offset passive income.

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Best Passive Real Estate Investments: The Lazy Investor’s Guide

SparkRental

I’ve owned dozens of rental properties since 2005. and I never field a phone call or negotiate with contractors. But I still get all the tax advantages, rental cash flow, and appreciation that active investors earn. For $20–100, you can buy ownership shares in rental properties. Today, however, I own none.