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R
raypol11
March 9, 2025
Question

Net investment tax for real estate professionals

  • March 9, 2025
  • 1 reply
  • 0 views

I am a realtor with rental property investments.  I understand I should not be liable for the investment tax of 3.8% of my rental income.  Although I indicated I am a real estate professional TT does not exclude the rental income portion on form 8960.  I would like to point out that my real estate income is reported on K1.  Please advise on your thoughts on resolving this.

 

Thank you,

    1 reply

    T
    ThomasM125
    March 9, 2025

    I think your problem may be that the schedule K-1 does not report your income as self-employment income, which it should if you are a real estate professional. In that case, the income would be considered non-investment income.

     

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