Passive Loss Rules and Real Estate Professionals (Currently Unavailable)

Author: Annette Nellen

This course explains the special rule that allows certain individuals to apply the material participation rules to real estate rental activities to avoid their classification as passive activities.

Publication Date: October 2015

Designed For
Practitioners with clients who own rental real estate. Practitioners who advise clients on the passive activity loss rules.

Topics Covered

• The mechanics of the Section 469(c)(7) "real estate professional" rule.
• The rationale for the rule.
• How the rule interacts with other aspects of the passive activity rules and in planning.
• Recordkeeping considerations.
• Tips for avoiding problems under this special rule.

Learning Objectives

• Recognize how the Section 469(c)(7) "real estate professional" rule works.
• Explain the rationale behind this special rule.
• Determine the real estate rental grouping options and how to make a grouping election.
• Gain an appreciation of how to avoid problems in applying the special rule.

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None