CPE Packages (Incl. Ethics) for Multiple States and Qualifications Available. Price $4/credit - CLICK HERE to view.

Passive Activity Loss Limitations: Working With The Complex Pal Rules & Real Estate Tax Issues.

4.2 (5)

J. Patrick Garverick, CFP, CPA

THE GARVS LLC

  • AFSP
  • CPA
  • EA
  • Tax Preparer
  • Oregon Tax Preparer
  • CTEC

Published: August, 2020

8 Credits

$120

Subject Area

Taxes

Webinar Qualifies For

8 CPE credit of Taxes for all CPAs

8 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ ) (Approval No. GEHNZ-T-00071-19-S)

8 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273) (Approval No. 6273-CE-0161)

8 CE credit of Federal Tax Law for 2021 Annual Filing Season Certificate program( IRS Approved : GEHNZ )

8 CE credit of Federal Tax for Maryland Tax Preparers (Approval No. GEHNZ-T-00071-19-S)

8 CE credit of Federal Tax for Oregon Tax Preparers (Approval No. GEHNZ-T-00071-19-S)

8 General Educational credit for Tax Professionals / Bookkeepers / Accountants

You need to register for the webinar to watch the video.

Click Here to Register

Before starting this self study program, please go through the instructional document.

Overview

  • 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. 

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

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Accounting Managers
  • Bookkeeper
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • Enrolled Agent
  • Entrepreneurial Accountant
  • Entrepreneurial CPA
  • Staff of Accounting Firm
  • Tax Accountant (Industry)
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Pros
  • Young CPA

Testimonial

4.2

(5)
60%
20%
0%
20%
0%

RG

the instructor was great to listen to & gave great examples to help me understand.

HG

Informative and deep dive of the subject topic.

SM

Again, questions were not written in proper english. Verbs were either missing or in the wrong place in the sentence.