Real Estate Professionals: Passive Activity Rules

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 kori.herrera@acpen.com

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

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