Tax Strategies for Passive Activities
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 minimizing the impact of the passive activity rules. We'll look at different methods of satisfying the "material participation" rules, and what recent case law tells us about how these rules work. We'll also cover tactics to use the IRS's "grouping rules" to increase nonpassive losses and almost as important, when not to group activities.
Publication Date: May 2023
Designed For
CPAs, EAs, tax staff and those who have some experience with tax preparation.
Topics Covered
- Methods of satisfying the "material participation" rules
- "Grouping strategies" - when to group, and when not to group
- The 7 Material Participation Tests
- Special Rule - Investor Time
- Whether your clients should make the election to "aggregate" rental properties
Learning Objectives
- Describe the proper method to notify the IRS that your client is grouping activities
- Identify and apply the seven methods of "material participation"
- Identify when clients qualify as real estate professionals and recognize the proper circumstances to aggregate rental properties
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
