It also requires a minimum of 750 hours a year spent on that work. That’s 14 hours a week.
This is true, a minimum of 750 hours as a RE professional, but it also requires that you spend more hours in that activity than other activities. So, one would have to switch to less than full time (likely less than half-time) at their current profession. For working professionals making > $50 per hour, doing so requires more than just working tax loopholes. It requires a change in lifestyle, just for the purpose of exploiting the tax code. I have no problem deploying assets, executing 1031 exchanges, etc to benefit from the tax laws. But making a career change is much more complicated than that. Again, it is very dependent on circumstances, and just because it works for Aunt Sally doesn’t mean it will work for you.
As a holder of real estate, I agree that it can be an important part of a balanced portfolio and over the long run it pays off. I also agree not to trust people’s anonymous advice on the web. Use the the ideas given, then do your homework.
