Course Information

Course No:  9273023

Course Name:  Passive Loss and At-Risk Rules

Field of Study:    Taxes

Course Description:  

With the adoption of the passive loss limitation rules, taxpayers are looking to CPAs for guidance related to what deductions are allowed, disallowed, or suspended. Updating practitioners on the practical aspects of §469, this course addresses the needed skill to handle these pragmatic issues. Fundamentals are reviewed, planning opportunities are identified, and creative strategies are discussed and evaluated along with remaining traditional approaches. The goal of this instructive course is to understand and solve client problems under §469, with emphasis on tax savings ideas. Participants will learn to master the proper administration of these complex and often cum-bersome provisions.

Learning objectives: After completing this section, you should be able to:

  • Identify affected taxpayers, categories of income and loss and passive losses under §469 and necessary §469 calculation steps and specify the §469 & §1211 limits and the ordering and suspension of any disallowed losses.
  • Recognize a taxpayer’s material participation in an activity by: Identifying the material participation tests and their application to entities such as partnerships and corporations; Specifying the activity grouping rules noting exempt activities; Determining passive activity particularly, the treatment of rental ac-tivity as passive; and Identifying “nested” activities.
  • Identify special passive loss rules and calculations by: Determining alternating use affects on amount realized and adjusted basis and citing additional loss limitations outside of §469; Recognizing requirements for the special $25,000 allowance; and Specifying recharacterization rules and their purpose.
  • Recognize the passive activity audit guidelines identifying audit issues, determine the real estate rental activity credit exception, and cite the at-risk limit rules as they relate to §469.

Course Material: Online Material

Program level: Overview

Prerequisites: General understanding of federal income taxation.

Advance preparation: None

Type of delivery method: QAS Self-study

Recommended CPE credits:   3.0

Final examination expiration date:   The program participant will have one year from the date of purchase to complete the course and final examination.