750 hours?

Upon reading a book in the “Rich Dad” series, it states that to take a passive loss on a joint return you have to had worked at least 750 hours actively in your real estate business.
How many of you log your hours?
What format do you log them in?
Have you ever been called to account for them?
How strict is the IRS on this matter?

A passive loss allowance of up to $25K (against other ordinary income) is available to rental property owners who actively participate in the management of their rentals regardless of their level of active participation. There is no minimum hourly commitment required. It is available to all taxpayers, regardless of filing status

Either you misunderstood what you read, or, the book is wrong.

Consult your own tax advisor for specific details.

Thanks for the reply and correction.

The $25,000 passive loss allowed to active participants in real estate investors gets phased out once your adjusted gross income begins to rise about $100,000. Specifically, for each dollar above $100,000, you lose $.50 of the $25,000 allowance. Once your income rises to $150,000, therefore, the normal passive loss limitation rules apply.

Also, the 750 hours thing is trickier that you think. Confer with your tax advisor, but if you have five properties and spend 200 hours on each, you don’t meet the 750 hours requirement… unless you make an election to treat all five properties as one activity. (Some people have gotten caught on this lately.)

A final point: The 750 hour test is not the only part of the real estate professional definition. You also need to spend more than half your time working as a real estate broker, real estate developer, property manager, etc. You can’t meet the 750 hour requirement if you have a full-time job someplace else.