Passive Activity Loss and At-Risk Limitations – 2017 Law – Course Manual Only

Course Content

A passive activity as a business activity in which a taxpayer is deemed not to actively participate.  Losses sustained in the operation of a passive activity may be limited. Losses sustained in a business activity are also subjected to at-risk rules limitations.

Topics Covered

  • Determining the amount you have at-risk in an activity
  • Items that increase or decrease the amount you have at-risk
  • Form 6198 At-Risk Limitations
  • Purpose and scope of passive activity rules
  • Definition of passive vs. nonpassive income
  • How passive activity loss limitations work
  • Exception for active participation in rental real estate activities
  • Exception for real estate professionals
  • Material participation defined
  • Preparation of Schedule E, Page 2
  • Preparation of Form 8582 Passive Activity Loss Limitations
  • Grouping activities
  • Sale of a passive activity
  • Dispositions other than by sale
  • Passive activity credits
  • Publicly traded partnerships (PTPs)
  • Activities that are not passive activities
  • Rental income reportable as self-employment
  • Farm rental income


By the conclusion of this course you should be able to:

  • Report income and loss amounts from Schedule K-1 on Schedule E Page 2
  • Explain how at-risk rules can limit your ability to claim losses sustained from an activity
  • Complete Form 6198 At Risk Limits
  • Differentiate between a passive and nonpassive activity
  • Explain how passive activity loss rules apply to income and losses from rental property and other passive activities
  • Compute the amount of allowed loss on disposition of part or all of a passive activity
  • Complete Form 8582 Passive Activity Loss Limitations
  • Explain the passive loss rules that apply to active participation in a rental activity
  • Describe special rules which apply to real estate professionals
  • Describe how grouping of activities may affect income reporting for passive and nonpassive activities
  • Explain when to report farm rental income on Form 4835

The course manual is delivered as a PDF document which you can download and print.


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Section 8.1

Course Manual Only

Course Type:



2017 Tax Law

Registration Status:

Registration Open

Ends: Wednesday, November 13th, 2019 11:59 PM (PDT)

Course Status


Started: Tuesday, November 13th, 2018 11:59 PM (PDT)

Ends: Friday, November 13th, 2020 11:59 PM (PDT)

Course Length:

0 Hours

Course Fees:

Course Materials $3.99
Total $3.99

Course Credits:   0

No CE is awarded with the purchase of this manual. You must enroll in and complete the full version of this course to received CE.

Field of Study


Program Level



Basic tax knowledge

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