Passive Activities & Rental Real Estate Income Tax Issues WEBCAST
Overview
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 Sect.469 and how and when the 3.8% net investment income tax under Sect.1411 applies.
Highlights
Detailed coverage of the passive activity rules under IRC Sect.469 (and related regulations), how the 3.8% net investment income tax under Sect.1411 and qualified business income (QBI) deduction under Sect.199A applies to rentals and passive activities, and what is a trade or business rental is under Sect.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 Sect. 1402.
Prerequisites
Background in individual income tax law.
Designed For
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.
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 Sect. 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 Sect. 1411.
Preparation
None.
Notice
None.
Leader(s):
Leader Bios
J Patrick Garverick, The Tax U
5 stars out of 5 - speaker rating for 2019 “[Pat Garverick] is very knowledgeable and an expert in his field of teaching. I would highly recommend him to colleagues.“ - past attendee
Pat began his career in public accounting in 1988 after obtaining his Bachelor of Science in Business Administration (BSBA) in Accounting from The Ohio State University. After receiving his Master of Taxation (MT) degree from Arizona State University in 1992, Pat began his own tax and financial planning business as well as writing, reviewing and teaching tax and financial planning CPE training courses around the country. As an award winning discussion leader, Pat’s knowledge, expertise and high energy has made him one of the profession’s highest rated speakers resulting in numerous perfect scores for both knowledge and presentation skills.Non-Member Price $400.00
Member Price $300.00