Passive Activity Loss Limitations: Working with the Complex PAL Rules & Real Estate Tax Issues.

4.5 (44)

J. Patrick Garverick, CFP, CPA

THE GARVS LLC

Monday, December 21, 2020 | 08:00 AM PST

  • CPA
  • EA
  • CTEC
  • TAX PROS
  • AFSP

Credits: 8 CPE | 8 CE

$120

Subject Area

Taxes

Webinar Qualifies For

8 CPE credit of Taxes for all CPAs

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

8 CE credit of Federal Tax Subjects for California Tax Professionals (CTEC Approved - 6273)

8 CE credit of Federal Tax for Oregon Tax Preparers

8 CE credit of Federal Tax for Maryland Tax Preparers

8 CE credit of Federal Tax for Enrolled Agents ( IRS Approved : GEHNZ )

8 General Educational credit for Tax Professionals / Bookkeepers / Accountants

Additional Dates

Jan 25, 2021 | 10:00 AM EST Register
Feb 01, 2021 | 08:00 AM PST Register

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?

  • 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

Testimonial

4.5

(44)
57%
34%
9%
0%
0%

WM

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

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

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!

RS

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

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.