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: August 2016

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

Topics Covered

• 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
• Describe the rationale behind this special rule
• Identify the real estate rental grouping options and how to make a grouping election
• Identify an appreciation of how to avoid problems in applying the special rule
• Describe the benefits of being a real estate professional
• Differentiate when an individual is classified as a real estate professional under Section 469(c)(7) and the requirements

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None