Passive Loss Rules and Real Estate Professionals (Completed)

Date: Tuesday, August 9, 2022
Instructor: Annette Nellen
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This course explains the special rule that allows certain individuals to apply the material participation rules to real estate rental activities to avoid their classification as passive activities.

Who Should Attend
Practitioners with clients who own rental real estate. Practitioners who advise clients on the passive activity loss rules.

Topics Covered

  • The mechanics of the §469(c)(7) "real estate professional" rule
  • The rationale for the rule
  • How the rule interacts with other aspects of the passive activity rules and in planning
  • Recordkeeping considerations
  • Tips for avoiding problems under this special rule

Learning Objectives

  • Identify how the §469(c)(7) "real estate professional" rule works
  • Describe the rationale behind this special rule
  • Differentiate the real estate rental grouping options and how to make a grouping election
  • Gain an appreciation of how to avoid problems in applying the special rule


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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