One of the most important tools in a tax practitioner's toolbelt should be a solid understanding of the passive activity loss limitation rules. Although the law and subsequent regulations have been around since 1986, taxpayers and practitioners alike have been justifiably frustrated with the complexity of tax reporting of passive income and losses. In this session, we will unpack the complexities of the tax law and regulations applicable to Passive Activities under IRC §469. We will cover the history and legislative intent of the passive activity rules, define the various technical terms, and explain the limitations that prevent taxpayers from circumventing the passive activity rules. 

Learning Objectives: 

• Navigate the complexities of the law and regulations applicable to Passive Activities under IRC §469


• Advise clients on the limitations applicable to their passive activity losses


• Identify passive activities and exceptions to certain activities that would otherwise be passive


• Understand the ways a taxpayer can be deemed to be materially participating in an activity


• Calculate passive loss carryovers and understand tax ramifications of passive activity dispositions 


• Recognize when a passive activity may be subject to the 3.8% net investment income tax

NASBA Approved

CPAacademy.org (Sponsor Id#: 111889) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222

EA Approved

CPAacademy.org (Sponsor Id#: HURS9) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering maintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

CPAacademy.org 1685 S. Colorado Blvd, Suite #205, Denver, CO 80222