How do You Get Material Participation in a Real Estate Deal? 

To qualify for material participation in a real estate deal, an individual must meet certain requirements as outlined by the Internal Revenue Service (IRS). These requirements include:

1. Participating in the real estate activity for more than 500 hours during the tax year.

2. Participating in the real estate activity for more than 100 hours during the tax year, and the activity is not a passive activity for the individual.

3. Participating in the real estate activity for more than 100 hours during the tax year, and the activity is a passive activity for the individual, but they also meet at least one of the following conditions:

• The individual is an owner of the real estate activity and has a personal net worth of less than $1 million.
• The individual is an owner of the real estate activity and has a personal net worth of less than $1 million, and the individual's adjusted gross income for the tax year is less than $100,000.
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4. Participating in the real estate activity for more than 100 hours during the tax year, and the activity is a passive activity for the individual, but they also meet all of the following conditions:

• The individual is an owner of the real estate activity and has a personal net worth of less than $1 million.
• The individual is an owner of the real estate activity and has a personal net worth of less than $1 million, and the individual's adjusted gross income for the tax year is less than $100,000.
• The individual is an owner of the real estate activity and has a personal net worth of less than $1 million, and the individual's adjusted gross income for the tax year is less than $100,000, and the individual is a "real estate professional."
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It is important to note that these requirements are subject to change and it is recommended to consult with a tax professional or the IRS for the most up-to-date information.

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