Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1 Limitations
2.00 Credits
Member Price $89
Non-Member Price $109
Overview
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.
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
None
Designed For
CPAs and tax professionals involved in the world of tax.
Objectives
- Distinguish passive from nonpassive activities under §469
- Apply material participation tests and real estate professional rules
- Analyze K-1 reporting and common PAL traps
- Coordinate PAL rules with basis, at-risk, and excess business loss limitations
- Identify planning opportunities to unlock suspended passive losses1. Distinguish passive from nonpassive activities under §469
- Apply material participation tests and real estate professional rules
- Analyze K-1 reporting and common PAL traps
- Coordinate PAL rules with basis, at-risk, and excess business loss limitations
- Identify planning opportunities to unlock suspended passive losses
Preparation
None
Leader(s):
Leader Bios
Sue Smith, Surgent McCoy CPE, LLC
Sue Smith, CPA manages her own firm specializing in tax planning for individuals and business owners and is also a frequent speaker at tax conferences. Smith was a Senior Manager in the tax departments of Price Waterhouse and Peat Marwick (the predecessor of KPMG). While at Price Waterhouse, she also held the national specialist designation for the real estate and partnership tax practices. During her time at Peat Marwick, Smith led the real estate and tax practices locally. She was an associate adjunct professor at Widener University in the master’s taxation program. Her ratings have consistently exceeded 4.7 on a scale of 5.0. Smith is a two-time recipient of the James L. McCoy Discussion Leader of the Year Award for excellence in teaching. And in 2015, she received the Surgent Outstanding Discussion Leader Award because of her consistently high evaluations for knowledge and presentation skills. Smith earned her Bachelor of Business Administration degree, with an accounting concentration, from the University of Toledo.
Non-Member Price $109
Member Price $89