House Flipping, IRC § 121, Short-term Rentals – Practical Examples & Discussion (Completed)

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Join us for this essential session to assist with handling unique situations of house flipping, rental properties, and IRC § 121 provisions through examples. We will explore Short-term rentals, related tax consequences, depreciation methods, converting Personal Residence to a rental and renting to related parties. When your client mentions they want to flip houses, there is more you need to ask to determine how to report those transactions. Will your client be a flipper or an investor holding a capital asset? Will the expenses be capitalized, expensed, depreciated, or part of inventory? The Internal Revenue Code has fortified home ownership through provisions allowing deductions such as mortgage interest, real estate taxes and our session topic of the IRC § 121 exclusion. This session will also explore tax consequences of qualified use, non-qualified use, conversion of primary residence to rental property, home office use, and various other scenarios that have tax implications. Bonus: We will also discuss issues surrounding an Airbnb.

Who Should Attend
All Tax professionals wanting a better review of Form 4797 and the components relating to this Form.

Topics Covered

• House Flipping of Real Estate
• Investors of Real Estate
• Court Cases, ATGs, Revenue Rulings, CCAs
• Provisions of § 121
• Converting Primary Residence to Rental Property
• Converting Rental Property to a Primary Residence

Learning Objectives

• Distinguish a House Flipper from an Investor
• What transaction goes Where
• alculate & Report a sale of a primary residence when part of it was used as a Airbnb
• ID unforeseen circumstances relating to § 121
• Clarify if your short-term rental goes on Schedule E or Schedule C
• Recognize if your short-term rental is subject to self-employment tax

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None