Safe Harbor for Real Estate Rentals (Currently Unavailable)

Author: Greg White

Breaking Developments: Brand New Safe Harbor for Real Estate Rentals (Rev. Proc. 2019-38) and §199A for Rental Real Estate (including triple net leases) outside the safe harbor. We’ll take a comprehensive, deep dive into which rentals qualify (and which might not qualify) for the 20% §199A QBID.

We’ll have extensive coverage of just released Revenue Procedure 2019-38 including:

• Can you amend 2018 tax returns to claim the new safe harbor?


• What types of properties are excluded from the safe harbor?

• What are the new types of excluded properties.


• What were the changes from Revenue Procedure 2019-7?


• How were the record keeping requirements relaxed?


• What happens if you don’t meet the safe harbor?

Publication Date: December 2019

Designed For
New and experienced CPA’s who practice in the tax area or who need a better understanding of the tax law for other areas of practice.

Topics Covered

• Revenue Procedure 2019”38 — Safe Harbor
• Grouping
• Separate Books and Records
• Safe Harbor Requirements
• Qualifying Services
• Contemporaneous Record Keeping
• Triple Net Lease Exclusions
• Effective Date
• Just a Safe Harbor — Don't Have to Meet for §199A QBID
• Threshold Question
• Do RE Rentals Qualify for QBID?
• Chief Distinction ”” Jurisdictions
• Rental RE: Tax Court Good Cases
• Important Guidance — Triple Nets
• Rev. Rul. 60”206: Is it Too Big a Leap?
• IRS Seems Unsure
• Substantial Authority
• Tax Risk
• Form 8275
• Triple Net Leases and the 2nd Circuit
• Rentals and 1099s
• Answers to Common Questions
• Ambiguity
• Self Rentals → SSTBs
• Basis, At”Risk and Passive Carryovers
• Passive Owners

Learning Objectives

• Identify case law and administrative law support for taking the QBID on triple net leases
• Recognize and apply the requirements of the IRS's "safe harbor" for rental property
• Identify how to complete the IRS form that reduces the risk of preparer penalties
• Identify special risk issues for taxpayers who reside in the Second Circuit (Connecticut, Vermont and New York)
• Recognize which property type qualifies for Safe Harbor
• Describe which factor is used to determine if rental real estate is a business in IRS Section 199
• Recognize when Form 8275 should be filed
• Identify which Form should be issued to unincorporated vendors
• Describe grouping and it's advantages
• Identify basic requirements to claim a deduction for business expenses as defined in Section 162
• Describe when passive owners can quality for QBID activity

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Prior knowledge of Real Estate Taxes.

Advance Preparation
None