IRC §469(c)(7) · Treas. Reg. §1.469-5T

Track your Real Estate Professional hours. Prove them if the IRS asks.

Effortlessly track your hours to qualify as an IRS Real Estate Professional. Audit-ready documentation for the 750-hour requirement and material participation tests.

Hour threshold
751
hour threshold — more than 750, never exactly
Second test
50%
of all your working hours
Participation tests
7
Treas. Reg. §1.469-5T(a)
Hours logged
412
toward REPS
Your target
751
more than 750
Days left
122
ends Dec 31
Real Estate Professional Status
750-Hour Test469(c)(7)(B)(ii)
412 of 751 hours
In progress
50% Test469(c)(7)(B)(i)
412 real estate vs 300 other
Passing

About 20 hours a week gets you there.

Example account
The number that actually matters

Track both REPS tests, not just the 750.

If you work a 2,000-hour job, your real target is not 750 — it is 2,001. The dashboard shows the number you actually have to beat.

Section 469(c)(7)(B) is conjunctive. You need more than 750 hours in real property trades or businesses and more than half of all the personal services you perform in any trade or business during the year. Most tools show you one bar. We show you the binding one.

You have to reach
2,001 h
max(751, 2,000 + 1)

The 50% test binds, not the 750. With 2,000 hours of other work you need more than that — 2,001 hours in real estate — before you qualify at all.

Capabilities

Everything the qualification actually requires.

Hours are the easy part. The rules around whose hours count, which property they belong to and which test applies are where returns get lost.

PORTFOLIO MANAGER

Property Tracking

Every hour is attached to a specific property, because material participation is judged activity by activity.

HOUSEHOLD SYNC

Spouse & Partner Hours

A spouse’s hours count toward material participation under IRC §469(h)(5) but never toward the 750-hour or 50% tests.

TEST ANALYSIS

All Seven Material Participation Tests

Each of the seven routes in Treas. Reg. §1.469-5T(a) is scored continuously against your log, per property.

SHORT-TERM RENTALS

A Separate 100-Hour Path

A property with an average stay of seven days or less is tracked on its own material participation path, not the 750.

HISTORICAL DATA

Year-over-Year

Closed years stay intact and comparable, which is what the 5-of-10-years test and an examiner both ask for first.

AUDIT PACKAGE

IRS Defense Package

One click produces a PDF narrative of how you qualify plus a CSV of every entry with date, property, duration and category.

Treas. Reg. §1.469-5T(a)

Seven ways to materially participate. You only need one.

  • 01 · 1.469-5T(a)(1)

    500+ Hours

    More than 500 hours in the activity during the year.

  • 02 · 1.469-5T(a)(2)

    Substantially All

    Your participation is substantially all of the participation by anyone.

  • 03 · 1.469-5T(a)(3)

    100+ Hours and No One More

    More than 100 hours, and no other individual spends more.

  • 04 · 1.469-5T(a)(4)

    Significant Participation

    Activities of more than 100 hours each totalling more than 500.

  • 05 · 1.469-5T(a)(5)

    5 of 10 Prior Years

    Material participation in any five of the ten preceding years.

  • 06 · 1.469-5T(a)(6)

    Personal Service, 3 Prior Years

    A personal service activity you materially participated in for any three prior years.

  • 07 · 1.469-5T(a)(7)

    Facts & Circumstances

    Regular, continuous and substantial participation, with a 100-hour floor.

  • Note

    Tested per activity

    Each property is its own activity unless you make a valid grouping election.

A taxpayer needs to meet only one of the seven, and each is judged per activity — property by property unless you have grouped them.

Short-term rentals

The 7-day rule puts short-term rentals on a different path.

If the average guest stay is seven days or less, the property is not a rental activity at all under Treas. Reg. §1.469-1T(e)(3)(ii)(A). That means it does not need Real Estate Professional Status and its hours do not count toward the 750. What it needs instead is material participation in that specific property.

In practice that usually means the 100-hour test: more than 100 hours on the property, with nobody else — the cleaner, the co-host or the management company — putting in more than you.

Lake cabin, Big Bear
Short-term rental · average stay 7 days or less
100-hour test
Hours on this property64 of 101 h
Measured against
More than 100 hours, and more than anyone else
In progress
Counts toward the 750-hour test
Non-rental activity — tested on its own
No
Spouse hours included
Attributed under IRC §469(h)(5)
Yes
Example
Documentation

An audit asks for the log, not the conclusion.

Everything you record is kept as a timestamped entry. When you need it, the export takes seconds.

IRS Defense Package
  • Qualification summaryHow each REPS test is met, with the figuresPDF
  • Per-property material participation analysisHours and the applicable test for each activityPDF
  • Full timestamped time logEvery entry in the order it was recordedPDF
  • Complete time log exportDate, property, hours, category, descriptionCSV
Activity categories

Every entry is filed under one of seven categories, so the log reads as a business record rather than a spreadsheet of round numbers.

  • Property management
  • Leasing
  • Repairs & maintenance
  • Administrative
  • Travel
  • Acquisition research
  • Construction
Sample entry
Tenant turnover walkthroughAug 28 · 1420 Maple St · Property management2.5 h
Pricing

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Both plans include
  • Unlimited Time LoggingPrecise tracking for all real estate activities
  • All 7 Material Participation TestsAutomated analysis of IRS-specific thresholds
  • Property & Portfolio ManagementDetailed categorization for unlimited properties
  • IRS-Ready Defense PackageOne-click audit-ready PDF and CSV exports
  • Household & Spouse SyncCombine hours for joint filing scenarios
  • Timestamped Audit TrailAutomated timestamps for every entry

Prove your hours before anyone asks.

Contemporaneous records are the difference between a position you can defend and one you have to argue. Seven-day free trial.

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