2024 Real Estate Professionals: Passive Activity Rules

Overview

When do they exist and how to report them? 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.

**Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Highlights

Definition, 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

Prerequisites

Basic working knowledge of business and real estate taxation

Designed For

CPAs working in public accounting firms and members in industry

Objectives

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