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| Author : | Danny C Santucci, JD |
| Course Length : | Pages: 34 ||| Word Count: 15,121 ||| Review Questions: 15 ||| Final Exam Questions: 13 |
| CPE Credits : | 2.5 |
| IRS Credits : | 2 |
| Price : | $22.45 |
| Passing Score : | 70% |
| Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
| Technical Designation: | Technical |
| Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 627 |
| Description : | With the adoption of the passive loss limitation rules, taxpayers are looking to CPAs for guidance related to what deductions are allowed, disallowed, or suspended. Updating practitioners on the practical aspects of §469, this CPA tax course addresses the needed skill to handle these pragmatic issues. Fundamentals are reviewed, planning opportunities are identified, and creative strategies are discussed and evaluated along with remaining traditional approaches. The goal of this instructive course is to understand and solve client problems under §469, with emphasis on tax savings ideas. Participants will learn to master the proper administration of these complex and often cumbersome provisions. |
| Usage Rank : | 13636 |
| Release : | 2024 |
| Version : | 1.0 |
| Prerequisites : | General understanding of federal income taxation. |
| Experience Level : | Overview |
| Additional Contents : | Complete, no additional material needed. |
| Additional Links : |
Passive Loss
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| Advance Preparation : | None. |
| Delivery Method : | QAS Self Study |
| Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
| Revision Date : | 15-Jun-2024 |
| NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
| Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 627 |
| Keywords : | Taxes, Passive, Loss, AtRisk, Rules, Tax, Mini, Course, cpe, cpa, online course |
| Learning Objectives : |
As a result of studying the assigned materials, you should be able to meet the objectives listed below. ASSIGNMENTAt the start of the materials, participants should identify the following topics for study:
* Material participation * Activity definition * Passive & nonpassive activities * Passive activity loss * Rental activities * Recharacterization of passive income * Passive activity credits * Passive activity audit guide * At-risk limits After reading the materials, participants will be able to:
2. Recognize a taxpayer's material participation in an activity by:
b. Specifying the activity grouping rules and exempt activities; c. Determining passive activity particularly, the treatment of rental activity as passive; and d. Identifying "nested" activities.
b. Recognizing requirements for the special $25,000 allowance; and c. Specifying recharacterization rules and their purpose. |
| Course Contents : | Chapter 1 - Passive Loss and At-Risk Rules Passive Loss Rules Application Active Losses Credits Calculating Passive Loss - The “Fish” Rules Categories of Income & Loss Passive Portfolio Material Participation Suspension of Disallowed Losses Fully Taxable Disposition Abandonment & Worthlessness Related Party Transactions Credits Disallowance Increase Basis Election Other Transfers Transfer By Reason Of Death - §469(g)(2) Transfer By Gift - §469(j)(6) Installment Sale - §469(g)(3) Activity No Longer Treated As Passive Activity - §469(f)(1) Closely Held To Nonclosely Held Corporation - §469(f)(2) Nontaxable Transfer Ordering of Losses Capital Loss Limitation - §1211 Carryforwards Allocation of Suspended Losses Taxpayers Affected Noncorporate Taxpayers Regular Corporations Personal Service Corporations Definition - Temp. Reg. §1.469-1T(g)(2)(i) Personal Services Principal Activity - 50% Test Substantially Performed by Employee-Owners - 20% Test Material Participation “Trade or Business” Definition Participation Regulations General Rule for Individuals Record keeping Meaning of Participation Exceptions to Definition - The “Unwork” Rules Husband & Wife Counted as One Annual Test Special Rules for Entities Limited Partnership Interests Presumption Exceptions to Presumption Trusts and Estates Retired & Disabled Farmers Corporations Activity Definition Final Regulations Relevant Factors Rental Activities Limited Partnership Activities Partnership & S Corporation Activities Consistency Regrouping Partial Dispositions Passive & Nonpassive Activities Trade or Business Characterization Based on Participation Rental Activity Exceptions Non-Passive Activities Rental Activities of Real Estate Professionals Eligibility Standards Working Interests in Oil & Gas Entities That Limit Liability Activities within Activities Passive Activity Loss Husband & Wife Special Rule for Closely Held Corporations Net Active Income Carryover of Disallowed Losses Treatment of Carryover Losses Allocation Process Significant Participation Activities Income from Dispositions of Property Used in Passive Activities Mixed Use of Property Alternating Use De Minimis Use Rule - 10/10 Test Disposition of Appreciated Property Formerly Used in a Nonpassive Activity Rental Activities Special Rule for Rental Real Estate Five Conditions Active Participation Change in Participation Application of $25,000 Allowance Rule Aggregation & Ordering: Net Operating Loss Net Leases Definition Recharacterization of Passive Income Active Business Recharacterization Significant Participation Income Rules Ratable Portion of Income Formula Significant Participation Losses Rental of Property Developed by Taxpayer Self-Rented Property Portfolio Income Recharacterization Rules Rental of Nondepreciable Property Equity Financed Lending Activities Limitation on Recharacterization Passive Activity Credits Regular Tax Liability Allocable to Passive Activities Formula Exception for Real Estate Rental Activity Credits Application Credits Subject to Passive Activity Limits Allocation of Disallowed Credits Treatment of Carryover Credits Passive Activity Audit Guide Indicators of Audit Issues Investment Interest Material Participation Significant Participation Activities Active Participation Net Lease Properties Vacation Rentals Self-Charged Expenses Rental & Nonrental Activity Grouping Divorce At-Risk Limits Amount At Risk Taxpayers Affected Closely Held Corporation Qualified Corporation Exception Qualifying Business Requirements Loss Defined Disallowed Losses Form 6198 Partnership & S Corporation Limits Activities Covered by the At-Risk Rules Equipment Leasing Real Property Grouping of Activities Partners & S Corporation Shareholders At-Risk Amounts Borrowed Amounts Related Persons Subsequent Years Amounts Not At Risk Nonrecourse Financing Other Loss Limiting Arrangements Reductions of Amounts At Risk Glossary |
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