Can I revoke the grouping election?

You can revoke the election if your circumstances materially change, such as selling most of your properties or a significant shift in the type of properties you own. Simply deciding you no longer want the election is not grounds for revocation.

What if I forgot to file the grouping election but have been treating rentals as grouped?

If you have been filing as if you made the election but never attached the statement, you may be able to file a late election under Revenue Procedure 2011-34.

REPS Grouping Election Statement Template & Example (2026)

Q: Where do I attach the grouping election statement?

Attach the written statement to your Form 1040 for the tax year you are making the election. If you e-file, your CPA or tax software should include it as a PDF attachment. If you paper-file, include it as a separate page behind your return. There is no dedicated IRS form for this election.

Q: Do I need to refile the grouping election every year?

No. Once you make the election, it applies to every future year in which you qualify as a Real Estate Professional. You do not need to refile it each year. If you have a year where you do not qualify, the election has no effect but snaps back into place if you re-qualify later.

Q: Are new rental properties automatically included in my grouping election?

Yes. Any rental property you acquire after making the election is automatically part of the grouped activity. You do not need to amend or refile the statement.

What the Grouping Election Does

Under Treasury Regulation 1.469-9(g), a qualifying Real Estate Professional can elect to treat all interests in rental real estate as a single rental activity.

This matters because REPS alone is not enough to make your rental losses non-passive. You also need to materially participate in each rental activity. Without the grouping election, a landlord with 8 properties would need to prove material participation in all 8 separately. With the election, those 8 properties become one activity, and 500 total hours across the entire portfolio satisfies the requirement.

Where to Attach the Statement

The election statement gets attached to your Form 1040 for the tax year you are making the election. If you e-file, your CPA or tax software should include it as a PDF attachment. If you paper-file, include it as a separate page behind your return.

There is no dedicated IRS form for this election. It is simply a written statement that meets the requirements of Treasury Regulation 1.469-9(g).

Template: Grouping Election Statement

Copy and customize the following for your own return:

Election to Treat All Interests in Rental Real Estate as a Single Rental Real Estate Activity

Pursuant to Treasury Regulation Section 1.469-9(g), the undersigned taxpayer hereby elects to treat all interests in rental real estate as a single rental real estate activity for the taxable year ending December 31, [YEAR], and all subsequent taxable years in which the taxpayer is a qualifying taxpayer under Treasury Regulation Section 1.469-9(c).

Taxpayer Name: [Your Full Legal Name] Taxpayer SSN: [XXX-XX-XXXX] Spouse Name (if joint return): [Spouse Full Legal Name] Spouse SSN (if joint return): [XXX-XX-XXXX]

Qualifying Real Estate Professional: [Name of spouse who qualifies]

Rental Real Estate Activities Included in This Election:

[Property Address 1] - [Type: SFR/Duplex/Multifamily/STR]
[Property Address 2] - [Type]
[Property Address 3] - [Type]
[Property Address 4] - [Type]

The qualifying taxpayer met the requirements of IRC Section 469(c)(7)(B) for the taxable year, including performing more than 750 hours of services in real property trades or businesses in which the taxpayer materially participated, and performing more than 50% of all personal services in real property trades or businesses in which the taxpayer materially participated.

Signature: ____________________ Date: ____________________

Filled-Out Example

Here is what a completed statement looks like for a real scenario:

Election to Treat All Interests in Rental Real Estate as a Single Rental Real Estate Activity

Pursuant to Treasury Regulation Section 1.469-9(g), the undersigned taxpayer hereby elects to treat all interests in rental real estate as a single rental real estate activity for the taxable year ending December 31, 2025, and all subsequent taxable years in which the taxpayer is a qualifying taxpayer under Treasury Regulation Section 1.469-9(c).

Taxpayer Name: Michael R. Johnson Taxpayer SSN: 555-12-3456 Spouse Name (if joint return): Lisa A. Johnson Spouse SSN (if joint return): 555-78-9012

Qualifying Real Estate Professional: Lisa A. Johnson

Rental Real Estate Activities Included in This Election:

1422 Oak Street, Memphis, TN 38104 - Single Family Rental
876 Elm Avenue, Memphis, TN 38112 - Duplex
2290 Poplar Lane, Little Rock, AR 72205 - Single Family Rental
450 Walnut Drive, Unit A-D, Little Rock, AR 72207 - 4-Unit Multifamily
1100 Riverside Blvd, Memphis, TN 38103 - Short-Term Rental

Signature: Lisa A. Johnson Date: March 15, 2026

Important Notes About the Election

It is binding going forward. Once you make the election, it applies to every future year in which you qualify as a Real Estate Professional. You do not need to refile it each year. If you have a year where you do not qualify as a Real Estate Professional, the election has no effect for that year but snaps back into place if you re-qualify later.

You can revoke it if your circumstances materially change. A material change might include selling most of your properties, moving from active management to fully passive investing, or a significant shift in the type of properties you own. However, simply deciding you no longer want the election is not grounds for revocation.

List all properties. Include every rental real estate interest you own, even properties managed by a property manager. The election groups them all into one activity for material participation testing purposes.

New properties are automatically included. Any rental property you acquire after making the election is automatically part of the grouped activity. You do not need to amend or refile.

This is separate from the 750-hour test grouping. The 1.469-9(g) election groups your rentals for material participation purposes. It does not affect how you calculate your 750 hours for the Real Estate Professional test. For the 750-hour test, you can already count hours across all real property trades or businesses, including being a real estate agent, property manager, developer, or landlord.

What If You Forgot to File the Election?

If you have been filing your tax returns as if you made the grouping election (treating all rentals as one activity and claiming non-passive losses), but you never actually attached the statement, you may be able to file a late election under Revenue Procedure 2011-34.

Keep Your Hours Documented

The grouping election simplifies which test you need to pass, but it does not reduce the need for hour tracking. The IRS will still want to see that you (or your spouse) logged 500+ hours across the grouped rental activity, with specific dates, times, tasks, and properties.

REPS Time generates the exact documentation the IRS expects, organized by property and activity type, so your grouping election has the time logs to back it up.