Taxation of Real Estate Professionals: Passive Loss Rules (Currently Unavailable)

Author: Greg White

Taxation of Real Estate Professionals and Application of the Passive Loss Rules to Real Estate
In this on-demand course with expert instructor and practitioner Greg White, CPA, you will lean to best identify which clients qualify as real estate professionals and how to apply the material participation tests to these clients. We’ll also cover the special passive activity rules that apply to real estate generally, and the special active participation rule. This class is vital for all practitioners who have clients involved in real estate businesses. These rules are complex and often mistakenly applied by tax practitioners and clients who don't understand the complexities.

Publication Date: January 2020

Designed For
Basic understanding of federal income taxation of real estate transactions.

Topics Covered

• Overview: Real Estate Professionals
• Clearing hurdles
• Freed from "Per Se" passive cage
• Reasons for the Real Estate Professional Rules
• Common types of Real Estate Professionals
• Qualifying as a Real Estate Professional
• Other "Per Se" exceptions
• Taxpayer strategies
• Computing time
• Marital participation
• Material participation
• Case studies
• Election to Group Rental Activities
• Documentation

Learning Objectives

• Recognize how to properly identify taxpayers who qualify as real estate professionals
• Differentiate whether clients should make the aggregation election for rental properties
• Describe and apply material participation rules to real estate professionals
• Identify how to discuss passive activity rules for real estate rentals for taxpayers who don't qualify as real estate professionals
• Differentiate grouping rules for rental and nonrental businesses
• Recognize and apply the active participant rule for real estate rental activities
• Describe how a self-rental group with a business may treat it
• Identify when clients pass the material participation test and the reasons they may or may not
• Recognize exceptions to the "per se" passive treatment of rental losses
• Describe how a real estate professional can prove the amount of time spent on real estate activities

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
CPAs, EAs, and tax professional who participate in this program should have a minimum of 2 years’ experience in the tax area including preparation of individual tax returns that involve passive loss limitations.

Advance Preparation
None