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Course Details

Overview of Topics

  • Net Investment Income

    12 mins
  • Passive Activity General Rules

    50 mins
  • Dispositions of Entire Interest in Passive Activity

    58 mins
  • Treatment Of Former Passive Activities

    72 mins
  • Trade or business activities defined for PAL rules

    97 mins
  • Material Participation Defined

    139 mins
  • Material Participation case Study

    164 mins
  • Activities & Grouping Basics

    201 mins
  • Activities conducted through another entity

    226 mins
  • Net income from certain property rented incidental to development activity

    281 mins
  • Real Property Trades or Business Defined

    346 mins
  • Treatment of Self-charged Items odf Intrest Income & Deduction

    368 mins

Course Description

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 seminar, 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, 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, financial and estate planners who advise clients on critical tax, estate planning, and wealth management matters will benefit from this practice-oriented seminar. Time will be provided to ask questions directly to Mr. Siegel via email during the program.

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.

Each attendee will receive the most comprehensive passive activity reference manual with numerous practice aids and real-world examples. 

TOPICS COVERED

  • 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 Speaker in the country and we are offering the classes at a much-discounted price during the 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. 

After registering for this webinar you will get Free E-Book worth $200. The book would be emailed to you, a day before the webinar on your registered email address on myCPE. The book is copyright protected. 

Webinar Qualifies for

  • 8 CPE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273)
  • 8 CPE credit of Federal Tax for Oregon Tax Preparers
  • 8 CPE credit of Federal Tax for Maryland Tax Preparers
  • 8 CPE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ )
  • 8 CPE credit of Taxes for all CPAs
  • 8 General Educational credit for Tax Professionals/Bookkeepers/Accountants

Learning objectives

  • 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

About Presenter

J. Patrick Garverick, CFP, CPA

Accounting Manager,THE GARVS LLC

pat@phoenixbeach.com

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. 

Phoenix Beach was developed to provide comprehensive and up-to-date educational content for business professionals of all types. As part of our mission we strive to make sure that the material we present is delivered by knowledgeable and skilled instructors so our session participants receive a great educational experience and value.

Review Questions

  • Question 1 : 00:15
  • Question 2 : 00:30
  • Question 3 : 00:45
  • Question 4 : 01:00
  • Question 5 : 01:15
  • Question 6 : 01:30
  • Question 7 : 01:45
  • Question 8 : 02:00
  • Question 9 : 02:15
  • Question 10 : 02:30
  • Question 11 : 02:45
  • Question 12 : 03:00
  • Question 13 : 03:15
  • Question 14 : 03:30
  • Question 15 : 03:45
  • Question 16 : 04:00
  • Question 17 : 04:15
  • Question 18 : 04:30
  • Question 19 : 04:45
  • Question 20 : 05:00
  • Question 21 : 05:15
  • Question 22 : 05:30
  • Question 23 : 05:45
  • Question 24 : 06:00
  1. Which is not an investment income?
  2. How a trade or business is described under Section 162?
  3. To whom the PAL rules of Section 469 and the regulations thereunder generally apply?
  4. Which business activities are exempted from passive loss rules?
  5. What is a passive activity?
  6. What is included in real property trade or business?
  7. What is the threshold limit of MAGI for joint return?
  8. How to avoid 3.8% tax?
  9. What is exception of rental activities?
  10. Which is an investment income?
  11. How to check material participation tests?
  12. When you are treated as materially participating in a farming activity?
  13. If you materially participate in your rental properties, how much passive losses can you deduct?
  14. A taxpayer can offset passive activity losses against which of the following?
  15. What is not considered ordinary income for tax purpose?
  16. How is rental income reported?
  17. The gross rental income from the property for such taxable year is less than 2% of the Lessor of:
  18. What is exceptions of activity disclosure requirement?
  19. What are factors to consider in determining whether a group can be viewed as a single activity?
  20. Which one of the following is treated as a single activity?
  21. • Which activity income of property shall be treated as not from a passive activity?
  22. When activity disclosure is not required?
  23. Which form is used for to file U.S. Partnership Income tax return?
  24. What is included in passive activity gross income?
  1. What is the full form of PAL under IRS?
  2. What is the rate of income tax for passive activity investments?
  3. What is requirement for tax payer to actively participate in a rental real estate activity?
  4. Which form is used for deduction of passive loss to the extent of passive income?
  5. When current and suspended losses are fully deductible if there is a “qualifying disposition”?
  6. Which activities the tax payer may not group that activity with any other activity?
  7. Which form is used for an S Corporation to file U.S. Income tax return?
  8. When activity disclosure is required?
  9. What is not included under passive activity gross income??
  10. In which of the following conditions you treat the net passive income as non-passive income?
  11. An activity is considered to be a Personal Service Activity if it involves the performance of personal service activity in:
  12. What is included under passive activity gross income?
  13. Qualified plan distribution are ___________________.
  14. Which form should you use to file PAL and credits?
  15. REPs stands for under IRS?
  16. What is included in passive activity gross income?
  17. Who shall be deemed to make timely disclosure?
  18. Which schedule is there for supplemental income and loss?
  19. Which activity does not prohibits grouping a rental activity with a trade or business under sec. 13.469 -4 (d) (1)?
  20. What does not included in passive activity gross income?
  21. Which form is used for passive activity loss and credit limitations?
  22. In which of the following activity disclosure is not required?
  23. When an activity is treated as an equity – financed lending activity?
  24. What is the full form of NII under IRS as per sec. 1411?
  25. What is the meaning of net earnings from self-employment?
  26. Which schedule is there for income or loss from rental real estate and royalties?
  27. To whom the passive activity loss and credit limits will not apply?
  28. What is the full form of MAGI?
  29. ___________________are businesses in which the taxpayer works on a regular, continuous, and substantial basis.
  30. Which activity loss is carry forward?
  31. Rental activity is included in which activity?
  32. When tax payer shall be treated as materially participating in an activity?
  33. What is the full form of SPA?
  34. When the activity is known as significant participation activity?
  35. Which service is knows as personal service activity?
  36. Who may not treat activities grouped together by a sec. 469 entity as separate activity?
  37. Which section is there for passive activity deduction?
  38. What is the requirement for actively participate in a rental real estate?
  39. • Spouses treated as ______ for participation in Passive Activity Losses.
  40. Which disclosure is required for addition of new activities?

FAQ

  • myCPE self-study courses are online.
  • The self-study format allows you to access the material online 24/7 and study at your own pace.
  • As per NASBA guidelines, you have one year from date of registration to complete each program.
  • Complete your final exam at any time and get CPE Credit instantly. You can retake the exam multiple times without any additional charges.
  • Course have minimum passing score of 70% and test takers will not be provided feedback on failed exams.
  • These are Live recorded presentations converted into Self Study (On-Demand Videos).

Refund/Cancellation Policy

  • For more information regarding refund, complaint and program cancellation policies, please contact our offices at 646-688-5128
  • Please email to   help@my-cpe.com  in case of any self study program queries.

Reviews

4.4
(25)
44%
48%
8%
0%
0%
  • WM
    WILLIAM MENKE , CPA
    May 26th 2020
    Patrick is one of the best presenters on myCPE! His command of tax subjects and the ability to present even complex concepts clearly is remarkable. I have attended his previous class on tax, it was amazing
MJ
May Jiang , CPA, Bookkeeper
This was a very complete review of the passive activity rules. This info is valuable to anyone who does taxes for high-income taxpayers, and many high-income taxpayers have passive activity investments.
AE
Allison Elliott , CPA
Mr.Patrcik was excellent and in 8 hrs accomplished what he set out to do – present an overview of the most important changes affecting real estate under the passive activity rules and the exceptions. He also very generously provided an outstanding handout – a much more detailed version of his actual presentation, which was much appreciated!
JB
jeffrey Browning , CPA
The presenter was terrific. Material covered was very complete and really worth the price. This quiz was extremely difficult and just too much to ask of attendees.
RS
Rachel Schwarz , CPA
Mr. Patrick provided great information in understanding the complex passive loss rules. I really enjoyed Mr.Patrick provided various case studies to solve for active participation.
DG
DANIEL GROSSBERG , CPA
Patrick's enthusiasm for the subject helped make this webinar fun and interesting. I am in governmental accounting professionally but wanted a refresher on passive activities for my personal endeavors. This was definitely worth the early wake up required.

NASBA Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) 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.

IRS Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary

CTEC Approved

MY-CPE LLC, 1600 Highway 6 South, Suite 250, Sugar Land, TX, 77478

MY-CPE LLC (Sponsor ID# : 6273) has been approved by the California Tax Education Council to offer continuing education courses that count as credit towards the annual “continuing education” requirement imposed by the State of California for CTEC Registered Tax Preparers. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

On-Demand Webinars

IRC 199A: 2 YEARS IN – KEY OVERLOOKED PLANNING INITIATIVES
Wednesday, November 11, 2020 View Details/Register
PASSIVE LOSS ISSUES WITH SCHEDULE K-1S
Wednesday, November 11, 2020 View Details/Register
IRS TAX PRACTICE & PROCEDURE INTRODUCTION
Friday, November 06, 2020 View Details/Register
BEST TAX RETURN WORKSHOP ON Partnerships & LLCs (FORM 1065) - 2020 UPDATES
Friday, November 06, 2020 View Details/Register
ITEMIZED DEDUCTION UPDATES - WITH EXAMPLES & CASE STUDIES
Thursday, November 05, 2020 View Details/Register
COVER YOUR ASSETS: FRAUD AND INTERNAL CONTROLS
Monday, November 02, 2020 View Details/Register
Excel Accountant: CREATING ERROR-FREE EXCEL SPREADSHEETS
Monday, November 02, 2020 View Details/Register
HOW TO ANALYZE YOUR CLIENT’S TAX SITUATION
Monday, November 02, 2020 View Details/Register
BEST TAX RETURN WORKSHOP ON S CORPORATION (1120S) - 2020 Updates
Friday, October 30, 2020 View Details/Register
IRS PENALTIES, ABATEMENTS, AND REASONABLE CAUSE
Wednesday, October 28, 2020 View Details/Register
YELLOW BOOK BOOT CAMP - NFP AND GOVERNMENTAL ACCOUNTING & AUDITING UPDATE
Wednesday, October 28, 2020 View Details/Register
IS IT DEDUCTIBLE: COMMONLY ASKED IRS DEDUCTIONS (UPDATED 2020)
Wednesday, October 28, 2020 View Details/Register
YELLOW BOOK BOOT CAMP – INTRODUCTION TO NFP AND GOVERNMENTAL ACCOUNTING & AUDITING
Monday, October 26, 2020 View Details/Register
Ethics for Wyoming CPAs
Friday, October 09, 2020 View Details/Register
CPA & ACCOUNTANTS: WHAT YOU SHOULD KNOW ABOUT CREDIT CARD SURCHARGING & IT'S LEGALITY
Thursday, October 22, 2020 View Details/Register
  • Cost $120
  • CPE Credits 8
  • CE Credits 8
  • IRS Course ID GEHNZ-T-00071-19-S
  • CTEC Course ID 6273-CE-0161
  • Subject Area Taxes
  • Course Level Intermediate
  • Instructional Method QAS Self Study
  • Prerequisites None
  • Advanced Preparation None
  • Published Date August 18 ,2020
  • Who should attend? Enrolled Agent Tax Practitioners Bookkeeper Accountant CPA - Small Firm CPA - Mid Size Firm Accounting Firm Tax Pros Tax Firm Young CPA Entrepreneurial CPA Tax Accountant (Industry) Tax Director (Industry) Entrepreneurial Accountant Tax Managers Accounting Managers Tax Preparer Staff of Accounting Firm
  • Handout Material Download
  • Key Terms Download

On-Demand Webinars

IRC 199A: 2 YEARS IN – KEY OVERLOOKED PLANNING INITIATIVES
Wednesday, November 11, 2020 View Details/Register
PASSIVE LOSS ISSUES WITH SCHEDULE K-1S
Wednesday, November 11, 2020 View Details/Register
IRS TAX PRACTICE & PROCEDURE INTRODUCTION
Friday, November 06, 2020 View Details/Register
BEST TAX RETURN WORKSHOP ON Partnerships & LLCs (FORM 1065) - 2020 UPDATES
Friday, November 06, 2020 View Details/Register
ITEMIZED DEDUCTION UPDATES - WITH EXAMPLES & CASE STUDIES
Thursday, November 05, 2020 View Details/Register
COVER YOUR ASSETS: FRAUD AND INTERNAL CONTROLS
Monday, November 02, 2020 View Details/Register
Excel Accountant: CREATING ERROR-FREE EXCEL SPREADSHEETS
Monday, November 02, 2020 View Details/Register
HOW TO ANALYZE YOUR CLIENT’S TAX SITUATION
Monday, November 02, 2020 View Details/Register
BEST TAX RETURN WORKSHOP ON S CORPORATION (1120S) - 2020 Updates
Friday, October 30, 2020 View Details/Register
IRS PENALTIES, ABATEMENTS, AND REASONABLE CAUSE
Wednesday, October 28, 2020 View Details/Register
YELLOW BOOK BOOT CAMP - NFP AND GOVERNMENTAL ACCOUNTING & AUDITING UPDATE
Wednesday, October 28, 2020 View Details/Register
IS IT DEDUCTIBLE: COMMONLY ASKED IRS DEDUCTIONS (UPDATED 2020)
Wednesday, October 28, 2020 View Details/Register
YELLOW BOOK BOOT CAMP – INTRODUCTION TO NFP AND GOVERNMENTAL ACCOUNTING & AUDITING
Monday, October 26, 2020 View Details/Register
Ethics for Wyoming CPAs
Friday, October 09, 2020 View Details/Register
CPA & ACCOUNTANTS: WHAT YOU SHOULD KNOW ABOUT CREDIT CARD SURCHARGING & IT'S LEGALITY
Thursday, October 22, 2020 View Details/Register