Real Estate Professionals, Passive Activity and Section 199A

Overview

This program will provide a detailed analysis of the real estate professional passive activity rules, including forms reporting examples, and integrates those rules with when real estate is considered a “business” under the Section 199A flow-through entity deduction.

Highlights

• Definition of a real estate professional
• Pros and cons of being a real estate professional
• Integration of the real estate professional rules with reporting on Form 1040, Schedule E
• Real estate professionals and indirectly owned (partnerships, S corporations) entity's reporting on Form 1040
• How "real estate business" is interpreted under the Section 199A rules and how it integrates with the passive activity rules Real estate professionals and the Form 8582 (Passive Activities)
• How to make the "grouping" election for passive activities and the flow-through deduction
• Several real-life situations illustrating the various possibilities and the consequences of failing to comply with the real estate professional standards
• Real estate professionals and the "former passive activities" rules

Prerequisites

Basic working knowledge of real estate taxation.

Designed For

CPAs working in public accounting firms and members in industry.

Objectives

• Apply the passive activity and flow-through entity rules for real estate professionals and show how these situations should be reported on various tax forms

Preparation

None