For real estate investors, few tax designations are as powerful—or as misunderstood—as Real Estate Professional Status (REPS) under Section 469 of the Internal Revenue Code. This isn’t just another label. It can determine whether you get to fully deduct your real estate losses against active income or lose those deductions to passive loss limitations.

In this episode of The Legacy Academy, attorney and tax strategist Natalia Ouellette-Grice, JD, MBA breaks down exactly what REPS means, how it works, and who truly qualifies. She explains the two-part test that separates serious real estate professionals from passive investors, and why hours logged in qualifying real property activities matter more than most people realize.

Natalia explores the common hurdles investors face—especially t ...