Passive Activities: Becoming a Tax Ninja Part 1
Author: Greg White
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Join expert Greg White, CPA, as he walks you through the latest techniques for mastering the complex passive activity rules. We’ll start with the basics of passive activities, including distinguishing passive income from nonpassive income. We’ll look at Congress’s purpose in enacting the passive activity rules (this is crucial to how we group activities). We’ll take a deep dive into how we can group passive activities in the most beneficial way. Topics will also include creating “passive income generators” and avoiding permanent loss of passive activity carryovers.
Publication Date: October 2023
Topics Covered
- Overall strategy
- Significance of grouping
- Can you group?
- Should you group?
- How do you group (disclosure)?
- Special grouping rules
- Grouping rental real estate with other rental real estate
- Changing grouping
Learning Objectives
- Identify the Congressional purpose behind the passive activity rules
- Identify grouping strategies that can benefit your client
- Recognize how to apply the "passive income generator" strategy
- Identify the number of grouping possibilities provided by the regulations
- Identify the referenced case in which the taxpayer used a passive income generator from a surgical center to "soak up" large passive losses from rental real estate
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
