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 |
Passive activity rules can significantly impact your clients’ tax outcomes—but with the right strategies, you can minimize their effect and unlock valuable deductions. In this course, tax expert Greg White, CPA, will guide you through proven techniques for navigating these complex rules. You’ll learn how to apply material participation tests, leverage grouping strategies, and determine when clients qualify as real estate professionals. Plus, discover when to aggregate rental properties for maximum benefit and when to avoid grouping altogether.
Join us and gain actionable insights to help your clients reduce passive losses and optimize their tax positions.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 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: January 2026
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
- Minimizing the impact of the passive activity rules
- What it takes to be a "real estate professional"
- 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 "materially participation"
- Identify when clients qualify as real estate professionals and recognize the proper circumstances to aggregate rental properties
- Identify the regulation that provides the seven material participation tests
- Identify the grouping factor that is listed as a non exclusive consideration in determining an appropriate economic unit
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
