This comprehensive training is designed to get the accountant up-to-speed quickly with the complex passive activity loss (PAL) rules that apply to certain investments in trades or businesses and rental activities. 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 3.8% net investment income tax under §1411 applies.
Once participants have completed this session, they should be able to * Form a partnership and calculate the partnership’s initial inside basis in the assets and partner’s outside basis in the entity * Prepare a basic partnership (Form 1065) Schedule K including the reporting of cash and noncash distributions * Understand how the Schedule K items get allocated to the partners/members on their individual Schedule K-1 * List the three main reasons for calculating a partner/member’s basis in a partnership/LLC * Calculate a partner/member’s outside basis and determine if losses and deductions are limited on their individual income tax return
* Each attendee will receive the most comprehensive passive activity reference manual with numerous practice aids and real-world examples * Topics include but are not limited to * Detailed coverage of the Tax Cuts & Jobs Act (TCJA) affecting passive activities and rental real estate (i.e., new 20% qualified business income deduction (QBI)) * How the PAL rules apply to rental real estate activities and investments in S-corporations and partnerships * How the 3.8% net investment income tax under §1411 applies to passive activities * Definition of an activity and the activity grouping and disclosure rules * Real estate professional exception to the PAL rules for investments in nonpassive rentals * Special $25,000 loss allowance for rental real estate with active participation * Material participation safe harbor rules * Events that trigger suspended PALs * Limitations on tax credits generated by passive activities * Special rules that recharacterize passive income to nonpassive income
Who Should Attend
Tax professionals who need an in-depth training course on the passive activity loss rules and how they apply to certain investments in trades or businesses and rental activities
Background in individual income tax law
Additional Event Information
Contact NCACPA if you need assistance with your online program. For the quickest results, email the Online Learning Team at [email protected], and a team member will contact you shortly.
If you need assistance with internet access issues, browser capability, or when the NCACPA office is closed* please call Freestone Technical Support at 866-702-3278 or by email at [email protected] .
*NCACPA office hours are 9:00 am–5:00 pm ET. Online Learning Team members will be available via email 30 minutes prior to the start of a live online program.
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