Passive Activities and Rental Real Estate Income Tax Issues
Monday, May 18, 2026
8 a.m.-3:40 p.m. Central
8 CPE (8 technical) | 8 IRS CE
Course code: 26WA-1791
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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
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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
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How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships
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Definition of an activity and the activity grouping and disclosure rules
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Real estate professional exception to the PAL rules for investments in non-passive rentals
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Special $25,000 loss allowance for rental real estate with active participation
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Material participation safe harbor rules
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Events that trigger suspended PALs
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Limitations on tax credits generated by passive activities
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Special rules that re-characterize passive income to non-passive income
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What rentals are subject to self-employment tax under Section 1402
Learning objectives
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Identify what activities are subject to the PAL rules and the exceptions to them including those for certain real estate professionals
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Define a passive activity, rental and trade or business under IRC Section 469
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List the seven ways to materially participate in an activity and the six exceptions to the definition of a rental activity
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Calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions
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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
|
Standard Member Fee |
$300.00
|
 Standard Nonmember Fee |
$300.00
|
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$300.00
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Instructor
Pat Garverick, CPA, MT, CFP
Location
Online
Area
of study
Taxation
Field(s)
of study
Taxes - Technical (8.0)
Level
Intermediate
Format
Group Internet Based
Sponsor
NASBA ID#: 107810
Prerequisites
Prereq.
Background in individual income tax law
Advance
prep
None
Cancellation
policy
Receive a full refund if you cancel at least four business
days before the event start date.
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