When do they exist and how to report them? This program will provide a detailed analysis of the real estate passive activity rules, including forms reporting examples, and integrates those rules with when real estate is considered a "business" under the Section 199A flow-through entity deduction. This course qualifies for PTIN credit.
CPAs working in public accounting firms and members in industry.
To provide a working knowledge of the passive activity and flow-through entity rules for "real estate professionals" and show how these situations should be reported on various tax forms.
- Definition of a real estate professional
- Pros and cons of being a real estate professional
- Integration of the real estate professional rules with reporting on Form 1040, Schedule E
- Real estate professionals and indirectly owned (partnerships, S corporations) reporting on Form 1040
- How "real estate business" is interpreted under the Section 199A rules and how it integrates with the passive activity rules
- Real estate professionals and the Form 8582 (Passive Activities)
- How to make the "grouping" election for passive activities and the flow-through deduction
- Several real-life situations illustrating the various possibilities and the consequences of failing to comply with the real estate professional standards
- Real estate professionals and the "former passive activities" rules