Since the enactment of the passive activity loss limitation rules in 1986, taxpayers and practitioners have been frustrated in attempts to have economic losses incurred in activities described as “passive” offset income derived from other sources. The passive income and loss rules create complex tax reporting, controversy, and confusion as to how various business and investment activities should be classified. For clients with real estate investments, it is often difficult to sort out which losses and expenses can be used to offset income. The focus on “passive” income and losses as distinguished from “active” income and losses has intensified greatly now as the new 3.8-percent Net Investment Income Tax (NIIT) has become effective and subjects passive income to this new tax.
This Online CPE/CE tax Webinar, presented by note author and tax educator, J. Patrick Garverick CPA, CFA will help participants understand the complications involved in offsetting income by applying losses from activities described as “passive.” He is an outstanding speaker and presenter and will provide straightforward explanations and helpful tips on this important topic, so clients can be advised with confidence. All tax professionals, tax preparers, accountants, attorneys, and financial and estate planners who advise clients on critical tax, estate planning, and wealth management matters will benefit from this practice-oriented seminar.
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 Online CE Webinar 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.
Each attendee will receive the most comprehensive passive activity reference manual with numerous practice aids and real-world examples.
This online CPE/CE Tax course covers the following key topics:
- Detailed coverage of the passive activity rules under IRC §469 (and related regulations)
- How the 3.8% net investment income tax under §1411 applies to passive activities and what is a trade or business rental is under §162
- How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships
- Definition of 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
J. Patrick Garverick is one of the most admired and best-reviewed Tax Speakers in the country and we are offering the classes at a much-discounted price during the COVID-19 pandemic. His courses have been best-reviewed time and again
- For Quality of Content
- For Relevance and Practical Case studies
- For Best Teaching Approach
- For 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 both presentation skills and knowledge.
During this webinar, you will get Free E-Book worth $200. The book will be shared with you during the webinar. The book is copyright protected.
- To identify what activities are subject to the PAL rules and the exceptions to them including those for certain real estate professionals
- To define a passive activity, rental, and trade or business under IRC §469
- To identify the seven ways to materially participate in an activity and the six exceptions to the definition of a rental activity
- To calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions
- To recognize what passive activity investments are potentially subject to the 3.8% net investment income tax under IRC §1411
- This IRS-Approved CE course is recommended for CPAs, EAs, AFSPs, and other Tax Professionals involved in tax planning for clients.
- This online CPE webinar for CPAs is recommended for PFS, CSAs, CVAs, TEPs, Attorneys, and Financial Estate Planners who advise clients on critical tax, estate planning, and wealth management matters.
Who Should Attend?
- Accounting Firm
- California Registered Tax Professional
- Certified Valuation Analysts
- CPA - Mid Size Firm
- CPA - Small Firm
- Enrolled Agent
- Entrepreneurial Accountant
- Entrepreneurial CPA
- Estate Planners
- Financial Planner
- Maryland Tax Preparers
- Oregon Tax Preparers
- Senior Accountant
- Tax Attorney
- Tax Firm
- Tax Managers
- Tax Practitioners
- Tax Preparer
- Tax Pros
- Trust & Estate Tax Professional
- Young CPA