A Real Estate Professional Time Log is crucial to earning professional status. Property Investment Pro Rob Rowsell invites his CPA to explain how to log time effectively. This way, the government knows you put in 750 hours each year to earn professional status.

Real Estate Professional Time Log – How To Properly Log Your Time

Our caller Ken asked Rob’s CPA Kevin Bassett for tips on keeping up with his time as he pursues Real Estate Professional status. Kevin replied to this often answered question by first explaining audit requirements.

When auditing, your tax professional will require a real estate professional time log. This could be in the form of a written or printed calendar for the year, or an Excel Spreadsheet with your hours documented. These methods also apply when reporting your mileage for deduction. If you are a real estate professional, you must produce an organized time log, totaling at least 750 hours. Kevin feels that logging both your working hours and your vehicle mileage in the same document is the most efficient method.

Since the real estate profession is a tangible job involving being physically present, travel is a must. You will no doubt drive to properties in order to inspect them, meet with management companies, and sign agreements. Make sure you thoroughly document this time. If putting in the required hours, you likely won’t have time for any other jobs, so it should be easy.

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Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!