Passive Losses ON DEMAND

Overview

This self-study CPE course addresses the practical aspects of Section 469 and the needed skills to handle pragmatic issues. Fundamentals are reviewed, planning opportunities identified, and creative strategies discussed and evaluated along with remaining traditional approaches. The goal of this continuing education program is to thoroughly review and solve problems under Section 469, with an emphasis on tax savings ideas. Participants will explore the proper administration of this complex and often cumbersome provision.

Highlights

Material participation. Activity definition. Passive and non-passive activities. Passive activity loss. Passive activity loss. Passive activity gross income. Passive activity deduction. Passive activity credits. Items received from pass-through entities. Interaction with other code sections.

Prerequisites

None.

Designed For

CPAs.

Objectives

Recognize the tax impact of the Section 469 limitation provision, determine categories of income and loss income and loss into categories, and list Congressional reasons for its passage. Specify the aggregate mechanics of the passive loss rules, identify what type of losses remain unaffected, and recognize passive and nonpassive (including portfolio) income sources. Identify ways to ultimately “free up” passive losses, specify the treatment of passive credits on disposition, and determine limitations on related party transactions. Determine the allowance of suspended losses upon nonrecognition transactions, specify the order of recognized tax attributes upon position, and recognize the allocation of losses from multiple passive activities. Identify which taxpayers are or are not subject to the passive loss rules, specify the full-time real estate professional exception, and recall the original Section 469 phase-in provisions, and more.

Preparation

None.

Notice

None.