Webinar

Passive Activities and Rental Real Estate Income Tax Issues

If you have questions about this event, please call us at 952-831-2707.

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This comprehensive training is designed to get the accountant up to speed quickly with the complex passive activity loss (PAL) rules that apply to certain investments in trades or businesses and rental activities. The cornerstone of the course is the in-depth coverage of the detailed tax law and regulations applicable to passive activities under IRC Section 469 and how and when the 3.8% net investment income tax under Section 1411 applies.

Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com

Major subjects

• Detailed coverage of the passive activity rules under IRC Section 469 (and related regulations), how the 3.8% net investment income tax under Section 1411 and qualified business income (QBI) deduction under Section 199A applies to rentals and passive activities, and what is a trade or business rental is under Section 162
• How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships
• Definition of an activity and the activity grouping and disclosure rules
• Real estate professional exception to the PAL rules for investments in non-passive rentals
• Special $25,000 loss allowance for rental real estate with active participation
• Material participation safe harbor rules
• Events that trigger suspended PALs
• Limitations on tax credits generated by passive activities
• Special rules that re-characterize passive income to non-passive income
• What rentals are subject to self-employment tax under Section 1402

Learning objectives

• Identify what activities are subject to the PAL rules and the exceptions to them including those for certain real estate professionals
• Define a passive activity, rental and trade or business under IRC Section 469
• List the seven ways to materially participate in an activity and the six exceptions to the definition of a rental activity
• Calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions
• Recognize what passive activity investments are potentially subject to the 3.8% net investment income tax under IRC Section 1411

Who should take this program?

• Tax professionals that need an in-depth training course on the passive activity loss rules and how they apply to certain investments in trades or businesses and rental activities.

Pricing

Our records indicate you are a nonmember. If you register, you will be charged $300.00 (Standard Nonmember Fee). Members: Please log in to receive member fee.