Skip to main content
WeCostSegFree proposal

Real Estate Professional Status (REPS) Hours Tracker

By Zawwad Ul Sami, Founder, WeCostSegPublished: 2026-05-14Last updated: 2026-05-14

REPS qualification under IRC Section 469(c)(7) requires more than 750 hours and more than half of all personal services in real property trades or businesses, plus a 5% ownership stake in the activity. The 500-hour NIIT safe harbor is separate.

REPS Hours Tracker

Real Estate Professional Status under IRC Section 469(c)(7). You must work more than 750 hours AND more than half of your personal services in real property trades or businesses, AND own at least 5% of the activity.

Annual RE hours
676
Annual other-work hours
2,080
More than 750 RE hours/yearNeed 75 more annual hours.fail
More than half of all personal services in real estatefail
Own 5% or more of activitypass
500+ hours NIIT safe harborpass
REPS NOT QUALIFIED on these inputs

The two tests

  1. More than 750 hours in real property trades or businesses during the year.
  2. More than half of all personal services performed during the year are in real property trades or businesses.

Both tests are conjunctive. Failing either disqualifies the taxpayer that year. Each spouse tests independently under IRC Section 469(c)(7)(B).

What counts and what does not

Personal services performed in real property trade or business activities count. Investor-type activities are excluded under Temp. Reg. 1.469-5T(f)(2): financing decisions, planning, monitoring summaries, and similar. Hands-on work, leasing, repair, management, and acquisitions count.

About the author

Zawwad Ul Sami, Founder

Zawwad Ul Sami is the founder of WeCostSeg, a founder-led cost segregation firm serving real estate investors across the US. He focuses on strategy, pricing, and the firm's overall direction.