Pat Garverick's Passive Activities & Rental Real Estate Income Tax Issues - Webcast
Overview
This comprehensive training is designed to get the accountant up to speed quickly with the complex passive activity loss (PAL) rules that apply to certain investments in trades or businesses and rental activities. The cornerstone of the course is the in-depth coverage of the detailed tax law and regulations applicable to passive activities under IRC 469 and how and when the 3.8% net investment income tax under 1411 applies.
Highlights
Each attendee will receive the most comprehensive passive activity reference manual with numerous practice aids and real-world examples. Topics include but are not limited to:
- Detailed coverage of the passive activity rules under IRC 469 (and related regulations), how the 3.8% net investment income tax under 1411 and qualified business income (QBI) deduction under 199A applies to rentals and passive activities, and what is a trade or business rental is under 162
- Discuss any TCJA provisions expiring after 2025 affecting passive activities and the QBI deduction
- How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships
- Definition of an activity and the activity grouping and disclosure rules
- Real estate professional exception to the PAL rules for investments in non-passive rentals
- Special $25,000 loss allowance for rental real estate with active participation
- Material participation safe harbor rules
- Events that trigger suspended PALs
- Limitations on tax credits generated by passive activities
- Special rules that re-characterize passive income to non-passive income
- What rentals are subject to self-employment tax under 1402
Prerequisites
Background in individual income tax law
Designed For
Tax professionals that need an in-depth training course on the passive activity loss rules and how they apply to certain investments in trades or businesses and rental activities.
Objectives
Once participants have completed this session, they should be able to:
- Identify what activities are subject to the PAL rules and the exceptions to them including those for certain real estate professionals
- Define a passive activity, rental and trade or business under IRC 469
- List the seven ways to materially participate in an activity and the six exceptions to the definition of a rental activity
- Calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions
- Recognize what passive activity investments are potentially subject to the 3.8% net investment income tax under IRC 1411
Leader(s):
Leader Bios
Patrick Garverick, Pat Garverick's The Tax U
J. Patrick (Pat) Garverick is a Certified Public Accountant (CPA) who began his career in public accounting in 1988 after obtaining his Bachelor of Science in Business Administration (BSBA) in Accounting from The Ohio State University. After receiving his Master of Taxation (MT) degree from Arizona State University in 1992, Mr. Garverick began operating his own tax and financial planning business. He also started writing, reviewing, and teaching tax and financial planning continuing professional education courses around the country. In addition to being a CPA, Pat is also a Certified Financial Planner (CFP). Pat has presented continuing education sessions since 1993 throughout the country and has won awards for both his skills as an instructor as well as for the content he has created. During his time in college Pat earned a letter as a member of the Ohio State Basketball squad. He remains a stanch supporter of the sports programs at his alma mater.
(3/19/21)
Non-Member Price $390.00
Member Price $315.00