Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1 Limitations
Overview
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This course explores the complex passive activity loss (PAL) rules under §469 with a focus on real estate activities and partnership K-1 reporting. Participants will learn how material participation, real estate professional status, grouping elections, and disposition rules affect the deductibility of losses. Practical examples demonstrate how PAL rules interact with basis, at-risk, and §461(l) limitations.
Delivery Method: Group internet-based
CPE Credit: Taxes
Program Level: Intermediate
Virginia Society of CPAs is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have the final authority on the acceptance of individual course for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
Highlights
• Passive activity loss (PAL) rules under IRC §469
• Passive versus nonpassive activity classification
• Material participation and real estate professional requirements
• Partnership K-1 reporting and common PAL pitfalls
• Coordination of PAL rules with basis, at-risk, and §461(l) limitations
• Disposition rules and strategies for utilizing suspended passive losses
Prerequisites
Designed For
CPAs and tax professionals involved in the world of tax.
Objectives
Upon completion of this program, participants will be able to:
1. Distinguish passive from nonpassive activities under §469
2. Apply material participation tests and real estate professional rules
3. Analyze K-1 reporting and common PAL traps
4. Coordinate PAL rules with basis, at-risk, and excess business loss limitations
5. Identify planning opportunities to unlock suspended passive losses
Preparation
None
Leader(s):
Leader Bios
Susan Smith
Susan Smith, CPA, manages her own firm specializing in tax planning for individuals and business owners. She spent 14 years as a senior manager in the tax departments of PricewaterhouseCoopers and KPMG. While at PricewaterhouseCoopers, she also held the national specialist designation for the real estate and partnership specialized practice units. While at Peat Marwick, Susan led the real estate and tax practices locally. Susan is a frequent speaker at tax conferences and has been an associate adjunct professor at Widener University in the master's in taxation program. Her ratings have consistently exceeded 4.85 on a scale of 5.0. Since 2008, she received the James L. McCoy Discussion Leader of the Year Award for excellence in teaching five times.
Non-Member Price $109.00
Member Price $89.00