PAR4
SURGENT’S GUIDE TO UNDERSTANDING THE PASSIVE ACTIVITY RULES IN 2015

Now more than ever, every business owner and real estate investor must determine if they materially participate in any trade or business, because there are potential net investment income tax savings you can help your clients attain. These extremely complicated rules require an in-depth understanding of election and planning issues that CPAs need to know. The IRS has been very aggressive in audits under the passive loss rules.

Major Topics:

  • A survey of the 300 pages of regulations under the passive activity loss rules
  • Understanding and substantiating material participation
  • An in-depth discussion of when you may or may not make an aggregate election for activities
  • What does it mean to qualify as a real estate professional?

Learning Objectives:

  • Understand the passive activity rules on a much deeper level
  • Discuss tax planning issues on these topics with clients

Designed For: CPAs in public accounting who deal with complex individual tax returns
Level of Knowledge: Intermediate
Prerequisite: Five or more years in public accounting working on complex individual tax returns
Advanced Preparation: None
Credits: 4