Comprehensive Passive Activity Losses (PAL) 2024
8.00 Credits
Member Price $299
Non-Member Price $399
Overview
Passive Activity Loss (PAL) rules have never been more critical in Federal tax reporting. This course provides a comprehensive and complete review of the laws and regulations impacting PALs, including the rules governing rental real estate, grouping and the 3.8% net investment income tax. Learn what qualifies as a passive activity and the rules governing its application by exploring several recent court cases and the existing regulations to know how the IRS views this critical area of the tax law. The IRS is actively auditing the failure to report passive losses properly. You and your clients can’t afford to be left behind.
Highlights
- Overview of the four loss limitation rules and how the PAL rules interact with the other limitations
- Definition of a PAL including a detailed review of the 7 determining factors contained in the Treasury Regulations with a review of several recent court decisions that interpret this regulation
- Impact of PAL rules on real estate ownership
- Learn the six Nonshelterable Passive Activity (NOPA) rules that act as anti-abuse rules to the PAL rules
- Discuss how the PAL rules impact tax credits
- Discuss tax elections and planning techniques associated with PALs
Prerequisites
General knowledge of individual/business income taxation and how they relate to passive activity laws.
Designed For
Tax professionals, CPAs, accountants, and other financial professionals looking to expand and update their understanding and knowledge.
Objectives
- Identify trade or business activities subject to the PAL rules and how the general PAL rules operate.
- Determine the PAL rules that apply to the ownership of real estate
- Recognize the seven material participation methods of qualifying for active status.
- Learn the six anti-abuse PAL rules that would recharacterize an otherwise passive gain as being active.
Preparation
None
Leader(s):
Leader Bios
Troy Lewis
Troy Lewis is the Past Chair of the Tax Executive Committee of the American Institute of CPAs (AICPA) in Washington, DC. In this role, he has testified six times before the United States Senate Finance Committee and the House Committee on Small Business. Mr. Lewis has been active with the AICPA and the Utah Association of CPAs, for over two decades serving in key leadership positions including the President of the UACPA. Mr. Lewis currently teaches accounting and tax at Brigham Young University in Provo, Utah. He is in practice as a Manager/Member at Lewis & Associates, CPAs, LLC in Draper, Utah. He also worked in public accounting at Arthur Andersen and for a community bank in St. George, Utah. He obtained his Masters of Accountancy and Bachelors of Science in Accountancy from Brigham Young University. He is also a Certified Public Accountant (CPA) and a Chartered Global Management Accountant (CGMA).
Non-Member Price $399
Member Price $299