Why hour tracking matters for REPS
If you're pursuing real estate professional status under IRC §469(c)(7) to convert rental losses from passive to non-passive, your hours log is your primary evidence in an audit. The IRS has repeatedly disallowed REPS claims not because taxpayers didn't do the work, but because they couldn't document it — post-hoc reconstructions and vague summaries ("worked on rentals, ~800 hrs") get thrown out in Tax Court. Contemporaneous, specific logs hold up. Estimates made after the fact generally don't.
That means the tool you pick matters less than the habit — but a decent tool makes the habit stick.
The options
1. Free spreadsheet template
A downloadable Excel template (imports cleanly into Google Sheets): log date, property, category, and a specific description per entry, with the 750-hour test, more-than-half test, and category/property breakdowns calculated automatically.
Good for: anyone who wants zero cost, full control over their data, and no account or app dependency. Works offline, exports easily to hand a CPA — or, if it comes to that, to produce for an audit.
Limitation: manual entry — no mobile time-tracking widget, no location auto-detection, no receipt/photo attachment.
The free REPS hours log template — 3 tabs, both tests auto-calculated, no signup.
2. General time-tracking apps (Toggl, Clockify, Harvest)
Not built for REPS specifically, but usable if you create dedicated projects per property and tag entries by category.
Good for: people who already use one of these for other work and want everything in one place. Clean mobile timers.
Limitation: no built-in 750-hour or more-than-half test logic — you're exporting to a spreadsheet anyway to do the actual REPS math. You're paying (most have free tiers with limits) for tracking that still needs a manual layer on top.
3. Dedicated REPS / real-estate hour-tracking apps
A small niche of purpose-built apps has emerged, generally priced as a monthly or annual subscription, offering REPS-specific fields, automated 750-hour/50% test dashboards, and sometimes audit-defense document generation.
Good for: landlords with multiple properties and multiple family members logging hours, who want the tests calculated automatically and a polished export for a CPA or in case of audit.
Limitation: recurring cost for something a spreadsheet formula does for free; smaller companies, so longevity/support risk is worth weighing if you'll rely on it for a multi-year audit trail.
At a glance
| Option | Cost | REPS test math | Mobile entry | Audit trail control |
|---|---|---|---|---|
| Free template | $0 | Built in | Manual (Sheets app works) | Your file, forever |
| Toggl / Clockify | Free tier → paid | None — export + DIY | Excellent | Export dependent |
| Dedicated REPS apps | Subscription | Built in | Good | Vendor dependent |
What actually matters, regardless of tool
Log contemporaneously — same day or same week, not from memory months later.
Be specific — "screened 2 rental applications, ran credit/background checks" survives scrutiny; "worked on property" does not.
Track material participation per property separately from your overall REPS hours, unless you've filed a valid aggregation election.
Keep the more-than-half test in view — REPS requires your real-estate hours to exceed all your other personal-service hours combined, which is why the strategy usually requires a non-W-2 spouse.
Bottom line
Paid apps add convenience — mobile timers, multi-user logging, polished exports — but none of that changes what the IRS is actually looking for. A well-built spreadsheet does the same math for free. If you outgrow it (multiple properties, multiple loggers, automated audit-ready PDFs), a dedicated app becomes worth paying for. Most REPS households don't need to start there.
Get the free template · Model your REPS W-2 offset scenario →