Real Estate Professionals, Passive Activity and Section 199A

Overview

Description:
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.

Learning Objectives:
After attending this presentation you will be able to...

Apply the passive activity and flow-through entity rules for real estate professionals and show how these situations should be reported on various tax forms

Program Content:

The major topics covered in this class include:

Definition of a real estate professional
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
Several real-life situations illustrating the various possibilities and the consequences of failing to comply with the real estate professional standards
Real estate professionals and the "former passive activities" rules

Who should attend: CPAs working in public accounting firms and members in industry.

Developed By: Federal Tax Workshops, Inc

Instructor: Steven C. Dilley, CPA, JD, PhD

CPE Credit: 2.0

Field of Study: Taxes (2 CPE)

Prerequisites: Basic working knowledge of real estate taxation.

Advanced Preparation: None

Format: QAS Self Study

Highlights

Definition of a real estate professional
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
Several real-life situations illustrating the various possibilities and the consequences of failing to comply with the real estate professional standards
Real estate professionals and the "former passive activities" rules

Prerequisites

Basic working knowledge of real estate taxation.

Designed For

CPAs working in public accounting firms and members in industry.

Objectives

Apply the passive activity and flow-through entity rules for real estate professionals and show how these situations should be reported on various tax forms