Don Farmer’s Passive Activities: Recharacterization & Disposition Rules

Overview

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Tackle some of the most advanced — and opportunity-packed — passive activity strategies. Learn how to use the “recharacterization rules” to convert passive income into nonpassive income, a smart move that can help your clients sidestep the net investment income tax. We’ll also cover the critical disposition rules — your go-to strategy for freeing up suspended passive losses when a property or business interest is sold. If you’re ready to put the finishing touches on your passive activity expertise and turn tax rules into real savings for your clients, this is the session to catch.

This course is part of a four-seminar series. Take it as a stand-alone seminar or sign up for the entire series for a comprehensive passive activity training.

Highlights

• Using the “recharacterization rules” to reduce net investment income tax (NIIT).
• How to trigger a disposition that frees up suspended passive losses.
• How former passive activities are treated for tax purposes.

Prerequisites

None

Objectives

• Identify income that is subject to the recharacterization rule.
• Identify requirements to trigger a disposition that allows suspended passive losses to be taken on the current year’s return.
• Identify how to apply suspended losses from a “former passive activity.”