Definition
Tax status allowing full deduction of passive losses if qualifying as real estate professional through work and time involvement.
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REPS status requires 750+ hours annually in real estate activities and more than 50% of work time in real estate. Allows unlimited passive loss deductions.
Pro Tip
REPS status is valuable but strict; maintain detailed time records documenting hours worked.
Example
Real estate professional deducting $25,000 passive losses from rental properties with REPS qualification.