750 hours is one test.Track them all.
REP Helper helps you qualify, and prove it, by tracking every IRS test that decides whether your rental losses offset your other income: the 750-hour test, the 50% test, material participation for each property, the grouping election and the 7-day average stay for short-term rentals. Most trackers count the 750 hours only.
- The 750-hour and 50% tests
- Material participation per property
- Grouping election and 7-day average stay
Included in: Every plan; the 50% test and grouping election on Professional and Elite
Each test,tracked every day.
Pass or short on each test, with the hours behind it, all year instead of at tax time.
The 750-hour test
More than 750 hours in real property trades or businesses in which you materially participate. REP Helper counts only qualifying time and projects your pace to December 31.
The 50% test
More than half of all your working hours must be in real estate. Enter the hours you work outside real estate and REP Helper keeps the ratio live. This is the test most investors with a day job fail.
Material participation, per property
The 500-hour test, the 100-hour test where no one works more than you, and the substantially-all test, tracked for each rental.
The grouping election
Treat all your rental real estate as one activity, so hours add up across properties, or keep them separate. REP Helper tracks material participation the way your CPA files.
The 7-day average stay
Average guest stay is calculated from your Airbnb, VRBO and iCal bookings, so you can confirm each short-term rental averages 7 days or less.
Real estate job hours
Hours as an agent, broker or contractor count toward REPS under the 5% ownership rule. REP Helper applies the rule for you.
How REP Helpercounts your hours.
Every activity is classified, so only time that counts is counted.
- 1
Each activity is classified
Activities are marked as material participation, general real estate or non-qualifying, so investor-type work like reviewing statements doesn’t inflate your totals.
- 2
Each hour lands on a person and a property
Your hours, your spouse’s hours and, for short-term rentals, work done by others are kept apart, because the tests treat them differently.
- 3
Your other work sets the bar
The hours you work outside real estate, and real estate employment where you don’t own more than 5%, go into the 50% test total, so you see the real ratio.
- 4
Tests update as you log
Every confirmed activity updates each test, and status and pace alerts tell you when you’re falling behind while there’s still time to catch up.
Passing 750 hoursisn’t enough.
To qualify as a real estate professional you must pass two tests in the same year: more than 750 hours in real property trades or businesses, and more than half of all your working time in them. With a 2,000-hour job, the 50% test means more than 2,000 real estate hours, which is why it, not the 750 hours, is where most people with a day job fall short.
Qualifying only removes the automatic “passive” label. Each rental is still passive unless you materially participate in it, which is why REP Helper tracks material participation per property, or for all your rentals combined if you make the grouping election.
Short-term rentals with an average stay of 7 days or less aren’t treated as rental activities at all. Material participation alone can make their losses non-passive, with no 750-hour or 50% test.
On a joint return, one spouse must pass the 750-hour and 50% tests alone, while both spouses’ hours combine for material participation. REP Helper keeps both rules straight.
Educational, not tax advice. The full rules, with citations, are in the IRS Guide.
Which plantracks what.
- 750-hour test
- Every plan.
- Material participation per property
- Every plan: the 500-hour, 100-hour and substantially-all tests.
- 7-day average stay
- Every plan, from your synced bookings.
- 50% test and real estate job hours
- Professional and Elite.
- Grouping election
- Professional and Elite.
- STR test settings and alerts
- Professional and Elite. REPS status alerts are on every plan.
Common questions.
Does REP Helper track the 50% test?
Yes. Enter the hours you work outside real estate, such as a W-2 job, and REP Helper compares them with your real estate hours all year, so you know whether more than half of your working time is in real estate. Included in Professional and Elite.
Which material participation tests does REP Helper track?
The three hour-based tests most rental owners rely on: more than 500 hours (test 1), substantially all of the participation (test 2) and more than 100 hours with no one working more (test 3), for each property.
Does REP Helper support the grouping election?
Yes. You can track material participation per property or for all your rental real estate combined, matching the aggregation election your CPA files. Included in Professional and Elite.
How does REP Helper handle spouse hours?
Each spouse logs their own hours. REP Helper keeps them apart for the 750-hour and 50% tests, which one spouse must pass alone, and combines them for material participation.
Does REP Helper calculate the 7-day average stay for short-term rentals?
Yes. Your Airbnb, VRBO and iCal bookings sync into the Stay Ledger, which calculates the average guest stay for each property. Included in every plan.
Is this tax advice?
No. REP Helper tracks and documents your hours against the IRS rules. Confirm which tests you rely on, and any elections, with your CPA.