CPE: 8 hours
Prerequisites: General knowledge in individual/business income taxes and how they relate to the passive activity laws.
Advanced prep: None
Who should attend: CPAs and tax professionals that need an in-depth training course on the passive activity loss rules and how they apply to certain investments in trade or businesses and rental properties.
This comprehensive course is designed to get you up to speed quickly with the complex and ever-changing passive activity loss (PAL) rules that apply to certain investments in trade or businesses and rental properties. The cornerstone of the course is the in-depth coverage of the detailed tax law and regulations applicable to passive activities under IRC 469 and how and when the new 3.8% net investment income tax under 1411 applies.
- Walk away with a complete understanding of the passive activity loss (PAL) rules and optimize any tax benefits with respect to them
- Learn how to identify what activities are subject to the PAL rules and the special exceptions to the them
- Understand the tax ramifications of income, losses and dispositions of passive activities
- In-depth coverage of calculating a S shareholder’s stock and debt basis and a partner/member’s outside basis
- Learn the three limitations for deducting losses and deductions on the owner’s individual income tax return (i.e., basis, at-risk and other Form 1040 limitations)
- Determine if cash or non-cash distributions are taxable to the owners and how they affect the basis calculations