MYCPE ONE

Passive Activities & Rental Real Estate Income Tax Issues 8 Credits 8 Credits 8 Credits

Passive Activities & Rental Real Estate Income Tax Issues 8 Credits 8 Credits 8 Credits

Updated till June-2025

  • J. Patrick Garverick

    CPA (US), CFP®

  • Rating

    4.7

  • Published on

    July, 2025

    Reviewed on

    February, 2025

  • Subject Area

    Taxes

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Access to this course is included with a MYCPE ONE subscription.

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Important Note: This course was developed prior to the enactment of the One Big Beautiful Bill (OBBB), and content may not reflect the latest tax reforms. We are actively updating our courses to reflect the new legislation.

If you want to attend courses related to OBBB, please click here.

Important Note: This course was developed prior to the enactment of the One Big Beautiful Bill (OBBB), and content may not reflect the latest tax reforms. We are actively updating our courses to reflect the new legislation.

If you want to attend courses related to OBBB, please click here.

Important Note: This course was developed prior to the enactment of the One Big Beautiful Bill (OBBB), and content may not reflect the latest tax reforms. We are actively updating our courses to reflect the new legislation.

If you want to attend courses related to OBBB, please click here.
AI Review Summary

Generated by AI based on all course reviews

Learning Objectives

  • Identify activities subject to the passive activity loss rules and applicable exceptions, including the rules for qualifying real estate professionals.
  • Define passive activities, rental activities, and trades or businesses under IRC §469.
  • Apply the material participation tests and the exceptions to the general treatment of rental activities as passive activities.
  • Calculate allowable passive activity income and losses and determine the tax consequences of dispositions of passive activities.
  • Identify passive activity investments potentially subject to the 3.8% net investment income tax under IRC §1411.

Course Overview

This comprehensive training provides tax professionals with an in-depth examination of the passive activity loss (PAL) rules under IRC §469. The course focuses on how the rules apply to rental real estate and investments in trades or businesses, helping participants understand how activities are classified and when losses may be limited.

Participants will examine material participation, rental activity rules, real estate professional status, suspended passive losses, dispositions, and other important passive activity issues. The course also addresses how the passive activity rules interact with the 3.8% net investment income tax under IRC §1411.

Topics include but are not limited to:

  • Comprehensive review of Federal income tax law affecting passive activities and rental real estate, with emphasis on newly enacted legislation, IRS guidance, regulations, and other current developments
  • Detailed application of the passive activity loss rules under IRC §469 to rental real estate and investments in S corporations and partnerships
  • Classification and grouping of activities, including applicable disclosure requirements
  • Real estate professional rules and their application to rental real estate activities
  • Special $25,000 rental real estate loss allowance for taxpayers who actively participate
  • Material participation tests and related rules
  • Events that trigger the release of suspended passive activity losses
  • Limitations on tax credits generated by passive activities
  • Rules that recharacterize certain passive income as nonpassive income
  • Interaction of the passive activity rules with the 3.8% net investment income tax under IRC §1411 and the qualified business income (QBI) deduction under IRC §199A
  • Application of the self-employment tax rules to rental activities under IRC §1402

J. Patrick Garverick is one of the country's most admired and best-reviewed Tax Speakers, and we offer the classes at a much-discounted price. His courses have been best-reviewed by audiences for:

  • Quality of Content
  • Relevance and Practical Case Studies
  • Best Teaching Approach
  • Best Course Material

Awards and Accolades

  • Award for Instructor Excellence for California Education Foundation.
  • Award for Outstanding Course Materials for California Education Foundation.
  • Rated top tax instructor in nearly every location he has presented.
  • One of the few instructors to have received perfect scores (multiple times) from attendees for presentation skills and knowledge.
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On Demand Credits for All Qualifications

Live Webinar Credits for All Qualifications

License details Credits Status
Taxes for Certified Public Accountants (CPA-US) 8 CPE Approved
Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-02139) 8 CE Approved
Taxes for Personal Financial Specialist (PFS) 8 CPE Eligible
Taxes for Chartered Financial Analyst (CFA) 8 PL Eligible
Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Taxation for Chartered Financial Consultant (ChFC) 8 CPE Eligible
Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Taxes for Delaware Licensed Public Accountant (DE-LPA) 8 CPE Approved
Estate Planning for Trust and Estate Practitioners (TEP) 8 CPE Eligible
Taxes for Certified Wealth Strategist (CWS) 8 CPE Eligible
Taxes for Retirement Income Certified Professional (RICP) 8 CPE Eligible
Federal tax-related matters for LTC (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Taxes for Certified Fiduciary and Investment Risk Specialist (CFIRS) 8 CPE Eligible
Retirement Planning for Chartered Life Underwriter (CLU) 8 CPE Eligible
Estate Planning for Certified Plan Fiduciary Advisor (CPFA)/Qualified Plan Financial Consultant (QPFC) 8 CE Eligible
Taxes for Financial Services Certified Professional (FSCP) 8 CPE Eligible
Taxes for Wealth Management Certified Professional (WMCP) 8 CPE Eligible
Taxes for Iowa Licensed Public Accountant (IA-LPA) 8 CPE Approved
Taxes for Chartered Advisor in Senior Living (CASL) 8 CPE Eligible
Taxes for Maine Licensed Public Accountant (ME-LPA) 8 CPE Approved
Taxes for Certificate in Investment Performance Measurement (CIPM) 8 PL Eligible
Retirement Planning for Chartered Advisor in Philanthropy (CAP) 8 CPE Eligible
Taxes for Chartered Special Needs Consultant (ChSNC) 8 CPE Eligible
License details Credits Status
Taxes for Certified Public Accountants (CPA-US) 8 CPE Approved
Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-02139) 8 CE Approved
Taxes for Personal Financial Specialist (PFS) 8 CPE Eligible
Taxes for Chartered Financial Analyst (CFA) 8 PL Eligible
Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Taxes for Delaware Licensed Public Accountant (DE-LPA) 8 CPE Approved
Estate Planning for Trust and Estate Practitioners (TEP) 8 CPE Eligible
Taxes for Certified Wealth Strategist (CWS) 8 CPE Eligible
Taxes for Retirement Income Certified Professional (RICP) 8 CPE Eligible
Federal tax-related matters for LTC (Approval No. GEHNZ-T-02649-25-S) 8 CE Approved
Taxes for Certified Fiduciary and Investment Risk Specialist (CFIRS) 8 CPE Eligible
Estate Planning for Certified Plan Fiduciary Advisor (CPFA)/Qualified Plan Financial Consultant (QPFC) 8 CE Eligible
Taxes for Financial Services Certified Professional (FSCP) 8 CPE Eligible
Taxes for Wealth Management Certified Professional (WMCP) 8 CPE Eligible
Taxes for Iowa Licensed Public Accountant (IA-LPA) 8 CPE Approved
Taxes for Chartered Advisor in Senior Living (CASL) 8 CPE Eligible
Taxes for Certificate in Investment Performance Measurement (CIPM) 8 PL Eligible
Taxes for Maine Licensed Public Accountant (ME-LPA) 8 CPE Approved
Taxes for Chartered Special Needs Consultant (ChSNC) 8 CPE Eligible
License details Credits Status
Taxes for Certified Public Accountants (CPA-US) 8 CPE Approved
Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-02649-25-O) 8 CE Approved
Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-02649-25-O) 8 CE Approved
Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-02139) 8 CE Approved
Taxes for Personal Financial Specialist (PFS) 8 CPE Eligible
Taxes for Chartered Financial Analyst (CFA) 8 PL Eligible
Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-02649-25-O) 8 CE Approved
Taxation for Chartered Financial Consultant (ChFC) 8 CPE Eligible
Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-02649-25-O) 8 CE Approved
Taxes for Delaware Licensed Public Accountant (DE-LPA) 8 CPE Approved
Estate Planning for Trust and Estate Practitioners (TEP) 8 CPE Eligible
Taxes for Certified Wealth Strategist (CWS) 8 CPE Eligible
Taxes for Retirement Income Certified Professional (RICP) 8 CPE Eligible
Federal tax-related matters for LTC (Approval No. GEHNZ-T-02649-25-O) 8 CE Approved
Taxes for Certified Fiduciary and Investment Risk Specialist (CFIRS) 8 CPE Eligible
Retirement Planning for Chartered Life Underwriter (CLU) 8 CPE Eligible
Estate Planning for Certified Plan Fiduciary Advisor (CPFA)/Qualified Plan Financial Consultant (QPFC) 8 CE Eligible
Taxes for Financial Services Certified Professional (FSCP) 8 CPE Eligible
Taxes for Wealth Management Certified Professional (WMCP) 8 CPE Eligible
Taxes for Chartered Advisor in Senior Living (CASL) 8 CPE Eligible
Taxes for Iowa Licensed Public Accountant (IA-LPA) 8 CPE Approved
Taxes for Certificate in Investment Performance Measurement (CIPM) 8 PL Eligible
Taxes for Maine Licensed Public Accountant (ME-LPA) 8 CPE Approved
Retirement Planning for Chartered Advisor in Philanthropy (CAP) 8 CPE Eligible
Taxes for Chartered Special Needs Consultant (ChSNC) 8 CPE Eligible

Additional Information

Credits

8

Credits

8

Credits

8

Course Level

Advanced

Instructional Method

QAS Self Study

Group Internet Based

Pre-requisites

None

Advance Preparation

None

NASBA APPROVED

In accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted based on a 50-minute hour.

MY-CPE LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. (MY-CPE LLC 1600 Highway 6 South, Suite 250, Sugar Land, TX 77478, Email: support@my-cpe.com, Phone: 646-688-2884)

IRS APPROVED

MY-CPE LLC, in accordance with the standards set forth in Circular 230 section 10.6, grants Continuing Education (CE) credits based on a 50-minute contact hour. As an IRS-approved CE provider, MY-CPE offers CE credits for Enrolled Agents (EA), Annual Filing Season Program (AFSP) participants, Tax Professionals, and Enrolled Retirement Plan Agents (ERPA), ensuring compliance with all regulatory requirements and supporting the maintenance of their professional credentials. (MY-CPE LLC 1600 Highway 6 South, Suite 250 Sugar Land, TX 77478, Email: support@my-cpe.com, Phone: 646-688-2884)

CTEC APPROVED

MY-CPE LLC, in accordance with the standards set forth in Circular 230 section 10.6, grants Continuing Education (CE) credits based on a 50-minute hour. MY-CPE LLC is approved by the California Tax Education Council (CTEC) to offer continuing education courses that count towards the annual continuing education requirement for CTEC Registered Tax Preparers. Additional information regarding registration as a tax preparer can be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free at (877) 850-2832, or by visiting www.ctec.org. (MY-CPE LLC 1600 Highway 6 South, Suite 250 Sugar Land, TX 77478, Email: support@my-cpe.com, Phone: 646-688-2884)

Need to meet your Enrolled Agent (EA) Continuing Education (CE) requirements? MYCPE ONE has you covered. Our Online EA CE courses make it easy to earn credits while expanding your expertise in tax regulations and practices. Stay ahead with the latest updates and in-depth insights designed to keep you at the top of your field. With flexible scheduling and a user-friendly platform, MYCPE ONE offers a convenient, interactive learning experience. Start advancing your career today!

About Instructor

J.Patrick Garverick

J. Patrick Garverick CPA (US), CFP®

Assistant Manager, The Garvs, LLC (dba The Tax U)

  • 4.6
  • rating
  • rating
  • rating
  • rating
  • rating

Pat Garverick is a Certified Public Accountant who currently lives in the Phoenix, Arizona area. He 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®). This role serves to enhance the knowledge he brings as he writes and presents continuing education material. Mr. Garverick is a member of the Arizona Society of Certified Public Accountants and the American Institute of Certified Public Accountants. Pat has presented continuing education sessions throughout the country and has won awards for both his skills as an instructor as well as for the content he has created. His knowledge, expertise, and high energy have made him one of the profession’s most highly rated speakers. He is in a very small group of instructors that are both extremely knowledgeable and interesting.

During his time in college, Pat earned a letter as a member of the Ohio State Basketball squad. He remains a staunch supporter of the sports programs at his alma mater.

Awards & accolades

  • Multi-time winner of the California Education Foundation’s 1) Award for Instructor Excellence and 2) Award for Outstanding Course materials
  • Rated top tax instructor in nearly every location he has presented 
  • One of the few instructors to have received perfect scores (multiple times) from attendees for both presentation skills and knowledge.

On Demand FAQs

What is Self Study (QAS)?

Self Study QAS (Quality Assurance Service) is a NASBA and other regulatory bodies approved program designed for Professionals to complete their Continuing Professional Education credits through self-paced, interactive courses that meet the highest standards of quality and compliance. Our courses qualify for credits with NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other professional organizations.

How do I earn CPE credits through self-study?

To earn CPE credits, you must complete the self-study course, pass the required assessments, and submit the necessary documentation. Credits are awarded based on the completion of course hours and successfully passing the assessments.

Are the self-study courses accepted by NASBA and other professional organizations?

MY-CPE LLC courses are accepted for continuing education credit by various professional certification programs, including NASBA, IRS, CFP Board, and HRCI. MY-CPE LLC is also recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® and SHRM-SCP® recertification activities.

What are the requirements to maintain compliance with self-study courses?

To maintain compliance, you must follow the guidelines set by NASBA and other regulatory bodies, which include completing the course within the specified timeframe, passing the assessments, and keeping accurate records of your learning activities.

How can I access my course completion certificates?

After successfully completing a self-study course and passing the assessments, you can access and download your course completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other professional organizations for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Live Webinar FAQs

What is a Live Webinar Group Internet-Based Credit?

A Live Webinar Group Internet-Based Credit is an interactive, real-time online seminar where professionals can earn Continuing Education credits by participating in live sessions led by experts in various fields. Our courses qualify for credits with NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other professional organizations.

How do I earn credits through live webinars?

To earn credits, you must attend the entire live webinar, actively participate in any polls or questions, and complete any required evaluations or assessments. Credits are awarded based on your attendance and participation in the live session.

Are the live webinars accepted by NASBA and other Professional Organizations?

MY-CPE LLC courses are accepted for continuing education credit by various professional certification programs, including NASBA, IRS, CFP Board, and HRCI. MY-CPE LLC is also recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® and SHRM-SCP® recertification activities.

What are the requirements to maintain compliance with live webinar courses?

To maintain compliance, you must adhere to the guidelines set by NASBA and other regulatory bodies, which include attending the full duration of the webinar, participating in interactive elements, and completing any post-webinar evaluations or assessments.

How can I access my webinar completion certificates?

After successfully attending a live webinar and fulfilling all participation requirements, you can access and download your completion certificates from your account dashboard on our platform. These certificates are accepted for compliance and reporting purposes with NASBA, IRS, CFP Board, HRCI, SHRM (for PDCs), Payroll Org, FP Canada, and 25+ other professional organizations.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Reviews and Ratings

out of 5

Excellent (71%)

Very Good (24%)

Average (4%)

Poor

Terrible

RK

Ronald Kormis, CPA (US)

4

Instructor J. Patrick has great knowledge regarding the subject matter. He explained each topic fully with multiple examples for demonstration purposes. This course was very intensive; I got a lot out of it.

JM

Johanna Matheny, CPA (US)

4

This is a long CPE. I cannot complete the quiz in one sitting. Therefore I continued to lose my progress. It would be more useful to make the quizzes printable so that I can follow along.

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Real Estate Income Tax Issues

Inclusions

  • Multiple Credits

    Multiple Credits

    Earn continuing education credits with flexibility. Choose from live webinars, on-demand courses, e-books, or podcasts to fit your learning style and schedule.

  • Certifications & Reporting

    Certifications & Reporting

    We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days - fastest in the industry.

  • Credit Tracker

    Credit Tracker

    Track and manage your compliance across all 50 states and over 100 designations. Our Credit Tracker keeps your CPE credits and compliance requirements always up-to-date.

  • Certificate Vault

    Certificate Vault

    Certificate Vault to upload, manage, and access certificates earned from various sources and an integrated credit tracker, allowing users to monitor and manage their credits conveniently for compliance.

  • Compliance Reminders

    Compliance Reminders

    Stay current with our automated reminder system. Receive timely alerts for your CPE requirements, ensuring you never miss a deadline.

  • Mobile App Access

    Mobile App Access

    The MYCPE ONE Mobile App allows you to learn on the go, providing access to educational content on Android and Apple iOS devices. You can learn anytime and anywhere, making it convenient for busy schedules.

  • Live Support

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    Our support team is available via live chat, email, and phone from 9 AM to 5 PM ET. We're here to help with any questions or issues, ensuring you have a seamless experience.

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