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

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

8 Credits


Subject Area


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 Annual Filing Season program (AFSP)( IRS Approved : GEHNZ )

8 CPE credit for Certified Fraud Examiners (CFEs)

8 CPD credit (Verifiable) for Certified Valuation Analyst (CVA)

8 CPD credit (Verifiable) for CPA/ABV

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

8 CE credit of Federal Tax for Maryland 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.

The topic is also scheduled as live webinar on the following dates

Oct 25, 2021 | 12:00 PM EDT Register
Nov 01, 2021 | 09:00 AM EDT Register
Nov 08, 2021 | 10:00 AM EDT Register


  • Passive Activities & Rental Estate Income Tax Issues
    4 mins
  • IRC 1411 Regulations Related to IRC 469
    32 mins
  • Qualified Business Income (QBI) Deduction
    55 mins
  • Treatment of Former Passive Activities
    88 mins
  • Passive Activity Defined
    119 mins
  • Material Participation
    159 mins
  • What is an Activity?
    206 mins
  • Treatment of Disallowed Passive Activity Losses & Credits
    238 mins
  • Recharacterization of Passive Income in Certain Situations
    274 mins
  • Real Estate Professionals
    312 mins
  • Treatment of self-charged interest income
    367 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. 


  • 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. 

Click to access more webinars on Latest Tax Updates | Estate and Financial Planning CPE Webinar | IRS Representation & Resolution CPE Webinar

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 (Industry)
  • CPA - Mid Size Firm
  • CPA - Small Firm
  • CPA in Business
  • Entrepreneurial Accountant
  • Entrepreneurial CPA
  • Staff of Accounting Firm
  • Tax Accountant (Industry)
  • Tax Attorney
  • Tax Director (Industry)
  • Tax Firm
  • Tax Managers
  • Tax Practitioners
  • Tax Preparer
  • Tax Professionals
  • Tax Pros