Here’s a question I get all the time: “My spouse is a transaction coordinator for real estate deals and gets a 1099 — does that make them a real estate professional for tax purposes?”
The short answer: probably not.
The IRS lists 13 occupations that can qualify as a real estate professional — but they must involve hands-on, material participation in managing, developing, or selling real estate.
Here’s the breakdown:
• Mortgage or real estate brokers: ✅ Qualify.
• Plumbers or contractors: ❌ Not unless they’re general contractors.
• Transaction coordinators: 🚫 Usually don’t qualify — too indirect.
If you want to be sure, check the IRS code directly — not a random blog post. Or better yet, book a call with one of my tax lawyers or CPAs who specialize in real estate strategies. It’s worth getting right — the tax benefits are huge if you truly qualify.
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