2024 Self-Rental Real Estate Passive Activity Rules

Overview

Loans, rental agreements, business combinations – what do these all have in common? They all have the potential of creating a related party transaction. This program presents a detailed analysis of the financial accounting rules for transactions with related parties, as well as compares and contrasts those rules with the AICPA financial reporting framework for small and medium-sized entities.

**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 of self-rental property – both for Sections 199A and 469
Self-rental income from directly owned properties and reporting on Form 1040, Schedule E, page 1
Self-rental income from indirectly owned (partnerships, S corporations) and reporting on Form 1040, Schedule E, page 2
Self-rental property and the Form 8582 (passive activity)Self-rental property and the flow-through entity grouping election
Several real-life situations illustrate the various possibilities and discuss the consequences of failing to comply with the reporting standards
Self-rental property and "former passive activities" rules

Prerequisites

Basic working knowledge of business taxation and passive activity rules

Designed For

CPAs working in public accounting firms and members in industry

Objectives

Identify the passive activity and flow-through entity rules for "self-rental property" and show how these situations should be reported on various tax forms