Passive Activity Loss and At-Risk Limitations – 2017 Law – QAS Self-Study
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.
- 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
At 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
|NASBA CPE||4 Hours|
|IRS (Federal Tax Law)||4 Hours|
|Oregon Tax Board||4 Hours|
|Oregon State Board of Accountancy||4 Hours|
|Texas State Board of Public Accountancy||4 Hours|
|New York State Board of Public Accountancy||4 Hours|
|QAS Self-Study||4 Hours|
Field of Study
Basic tax knowledge
IRS Federal Program Number
Meet Your Instructor
April Gutierrez, Enrolled Agent:Known for her entertaining speaking style and ability to make a complex subject easy to understand, April is frequently invited to speak to business groups and news media on tax-related topics. She has a B.A. in Communication Studies from Murdoch University in Perth, Australia. She obtained her Oregon LTC in 1995.April resides in Portland, Oregon, with her husband Jess and their two sons. Her pastimes include gardening, travel, and playtime with her Arabian horse, Fancy.
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