Passive Activities: Becoming a Tax Ninja Part 4
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 |
Join expert Greg White, CPA, as he walks you through the latest techniques for minimizing the impact of the passive activity rules. We’ll cover the “recharacterization rules” that can transform passive income into nonpassive income (and how this can help avoid the net investment income tax). We’ll also cover the disposition rules that allow taxpayers to free up suspended passive losses.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2029 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
Publication Date: May 2026
Topics Covered
- Using the "recharacterization rules" to reduce net investment income tax (NIIT)
- How to trigger a disposition that frees up suspended passive losses
- How former passive activities are treated for tax purposes
Learning Objectives
- Identify income that is subject to the recharacterization rule
- Identify requirements to trigger a disposition that allows suspended passive losses to be taken on the current year's return
- Identify how to apply suspended losses from a "former passive activity"
- Identify the amount of NIIT produced when SIPPA rules are met
- Identify the key requirement for rental income to be treated as nonpassive under the self-rental rule
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
