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Passive Activities & Rental Real Estate Income Tax Issues


Total Credits: 8 including 8 Taxes - Technical

Average Rating:
   19
Categories:
Partner Produced |  Tax
Faculty:
J. Patrick Garverick, CPA, MT, CFP
Course Levels:
Intermediate
Duration:
8 Hours
License:
Product Setting: Expires 40 day(s) after program date.

Dates


Description

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 §469 and how and when the 3.8% net investment income tax under §1411 applies.

Basic Course Information

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 §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 §1411

Major Subjects
  • Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting passive activities and rental real estate (i.e., new 20% qualified business income deduction (QBI))
  • How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships
  • How the 3.8% net investment income tax under §1411 applies to passive activities
  • 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

Course Materials

Faculty

J. Patrick Garverick, CPA, MT, CFP Related Seminars and Products


J. Patrick "Pat" Garverick 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, Mr. Garverick 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, his knowledge, expertise and high energy have made him one of the profession’s highest rated speakers resulting in numerous perfect scores for both knowledge and presentation skills.


Additional Info

Basic Course Information

Prerequisites None
Advanced Preparation None
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
Original Recording Date 06/17/2019
Yellow Book No
Course Developer MICPA
Date Added to Catalog 04/05/2019

Additional Information

Complaint Resolution Policy Please contact Anne Taylor for any complaints. anne.taylor@acpen.com, (972-377-8199).
Official Registry Statement Business Professionals' Network, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
Instructional Delivery Method Group Internet Based
Course Registration Requirements Online Registration
Refund/Cancellation Policy Please contact the ACPEN help desk 1-877-602-9877 or help@acpen.com if you wish to cancel your attendance for a previously purchased webcast and are requesting a refund or transfer.

Reviews

5
4
3
2
1

Overall:      4.6

Total Reviews: 19

Comments

Teresa J

"Patrick did a great job! He made the course very understandable "