Passive Losses ON DEMAND

Overview

This course addresses the practical aspects of Section 469 and the needed skill to handle pragmatic issues. Fundamentals are reviewed, planning opportunities identified, creative strategies discussed and evaluated along with remaining traditional approaches. The goal of this instructive program is to understand and solve problems under Section 469, with emphasis on tax savings ideas. Readers will overview the proper administration of this complex and often cumbersome provision.

Highlights

Material participation. Activity definition. Passive and non-passive activities. Passive activity loss. Passive activity gross income. Passive activity deduction. Passive activity credits. Items received from pass-through entities. Interaction with other code sections.

Prerequisites

None.

Designed For

This program is appropriate for professionals at all organizational levels.

Objectives

Specify the mechanics of the passive loss rules, recognize the impact of Section 469 to appropriate deductions, identify what type of income may be offset by passive losses and then determine a passive loss. Identify how to avoid the application of the passive loss rules through material participation, and factors under the TRA ‘86 that were considered in determining whether the taxpayer’s involvement in the operation of the activity is regular, continuous, and substantial. Recognize the history and rationale of the definition of “activity. “ Determine the differences between passive activities and nonpassive activities under Section 469. Identify passive activity gross income, and more.

Preparation

None.

Notice

None.