Passive Loss Issues With Schedule K-1s

Nicholas Preusch, CPA

YHB | CPAs & Consultants

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

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

Overview

  • Basic rule of Passive Losses
    11 mins
  • Burden and Records
    20 mins
  • Material Participation 7 Tests Limited Partners
    34 mins
  • Why Do We Care?
    50 mins
  • Real Estate Pros
    62 mins
  • Where to Report
    72 mins

Course Description

Preparing and interpreting Form K-1 can be daunting even for experienced tax accountants. Proper completion of a client's federal Schedule K-1s to report a partner's share of a partnership's income, gains, losses, etc. has long presented challenges to tax advisers, particularly for specialized investment partnerships such as fund of funds or master limited partnerships. Changes to the Schedule K-1 beginning with the 2018 tax year may create additional complexity for partnerships and their tax advisers. The updated Schedule requires taxpayers to disclose the recipient partner's beginning share of partnership liabilities, as opposed to only the ending amount, which will help in tracking a partner's basis. 

This CPE webinar will look at Passive activities and try to simplify the rules to make them easy! Passive activities have been around since the 1980s and tend to be a complex area of taxation. We will look at the general rules of passive activities and then look at the more complex issues such as grouping and proper tax planning.  

This session will also cover the passive activity rules by explaining why they exist and their overall philosophy, describing their mechanics in terms attendees can understand, and illustrating planning strategies to use with clients.

Learning Objectives

  • To identify when passive determinations need to be made
  • To recognize that Passive Per Se - activity is always passive unless an exemption applies
  • To recall that Activity - The lowest level of function in a business
  • To recall that Material Participation - Meets one of seven tests outlined in IRC 469

Who Should Attend?

  • Accountant
  • Accounting Firm
  • Accounting Managers
  • Accounting Practice Owners
  • Bookkeeper
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Entrepreneurial Accountant
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Pros
  • Young CPA