For 2026, the Real Estate Professional status remains a powerful tool for high-income investors. If you qualify—by spending more than 750 hours working in real estate and over 50% of your total working hours in the industry—you can treat your rental activities as non-passive. This lets you deduct unlimited rental losses against other income, such as business profits or wages.
👉Tip: Track your hours carefully. A contemporaneous time log is your best friend during an audit.
Have you ever qualified for Real Estate Professional status? If not, are you planning to track your hours this year?