Mobile Edition

Passive Activities and Rental Real Estate Income Tax Issues (4172531C)

Date:Friday, December 22, 2017
Time:11:30AM - 7:00 PM
(Registration at 11:00AM)
Facility:Webcast or Webinar, Online
CPE Credit:8.0 Technical Business
Instructor: J P. Garverick
Vendor:California CPA Education Foundation
Course Level:Intermediate
Early Bird Price:$245.00 FICPA Members, $365.00 Non-Members


Get up to speed with the complex passive activity loss (PAL) rules that apply to certain investments in trades or businesses and rental activities. Take an in-depth look at the detailed tax law and regulations applicable to passive activities under IRC Sec. 469 and how and when the 3.8% net investment income tax under Sec. 1411 applies. Each attendee will receive a comprehensive passive activity reference manual with numerous practice aids and real-world examples.

Note: At the request of the author, course materials for this program cannot be printed. Please save the materials to your desktop prior to the event. Adobe Reader Version XI is a prerequisite for downloading materials. A printed course book can be purchased for $50 (including shipping and handling). Choose the option to purchase the book when registering for the course. Book purchase must be made five or more business days prior to the presentation date to ensure it arrives in time. The book will be shipped directly to your preferred address. The eBook will still be accessible via “My Events” on  

  • Identify activities subject to the PAL rules and the exceptions to them, including those for certain real estate professionals.
  • Define a passive activity, rental and trade or business under IRC Sec. 469.
  • Outline seven ways to materially participate in an activity and six exceptions to the definition of a rental activity.
  • Calculate the passive activity income and losses allowed and the tax ramifications of passive activity dispositions.
  • Recognize what passive activity investments are potentially subject to the 3.8% net investment income tax under IRC Sec. 1411.

Major Topics:
  • How the PAL rules apply to rental real estate activities and investments in S corporations and partnerships.
  • Definition of an 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.

Who Should Attend:

Tax professionals who need an in-depth training course on the passive activity loss rules and how they apply to certain investments in trades or businesses and rental activities.

General knowledge of individual/business income taxation and how they relate to passive activity laws.

Advanced Preparation:


If listed below, select the appropriate sessions or options to continue with your purchase.

Registration Status: CLOSED - Online registration for this course is now closed. Please contact the Member Service Center at (800) 342-3197 if you wish to inquire about registering.