ACPEN: Real Estate Professionals: Passive Activity, Sec. 199A and Investment Income Tax

Overview

When do they exist and how to report them? This program will provide a detailed analysis of the real estate professional 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.

*Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to terri.storer@acpen.com

Highlights

• Definition, 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) entity’s 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

Prerequisites

Basic working knowledge of business and real estate taxation

Designed For

CPAs working in public accounting firms and members in industry

Objectives

• Identify the passive activity and flow-through entity rules for ""real estate professionals"" and show how these situations should be reported on various tax forms
• Apply planning strategies and address potential pitfalls

Preparation

None