Leveraging IRC 469 Real Estate Professional Rules for Individual Taxpayers: Avoiding Passive Loss Limitations
Identifying and Grouping Real Estate Rental Activities, Meeting Material Participation Thresholds
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a thorough and practical guide to navigating the real estate professional rules of IRC 469(c)(7). The panel will discuss the general passive loss limitation rules and exceptions for real estate activities, and will detail the material participation standards, grouping rules, and quantitative tests under Section 469(c)(7)(B). The webinar will also provide useful guidance on available aggregation elections to avoid passive loss limitations.
Outline
- Default passive income loss limitation rules under Section 469
- When an individual taxpayer would want to be classified as a real estate professional
- Determining whether a taxpayer is a “real estate professional”
- Material participation tests
- Section 1.469-9 grouping/aggregation election
- Documentation requirements
- Illustrations and examples
Benefits
The panel will discuss these and other important questions:
- The default passive loss treatment for real estate income
- Grouping real estate rental activities
- Applying the material participation tests to individual or grouped real estate activities
- How the Sec. 1.469-9 aggregation election functions
Faculty
Brian T. Lovett, CPA, JD
Partner
Withum Smith+Brown
Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses,... | Read More
Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses, including all aspects of tax compliance for partnerships and corporations. He advises clients with regard to the structure and tax consequences of new business ventures, and assists with restructuring existing businesses for increased tax efficiency. Prior to joining his firm, he was with a “Big 4” accounting firm, working closely with large, multinational real estate investment companies.
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Scott Bartolf, CPA
Senior Tax Manager
Withum Smith+Brown
Mr. Bartolf specializes in individual, partnership, corporate, estate & trust taxation and, state tax audits. He... | Read More
Mr. Bartolf specializes in individual, partnership, corporate, estate & trust taxation and, state tax audits. He reviews tax returns, researches tax issues and develops solutions, and analyzes complex business transactions.
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John H. Skarbnik
Professor of Taxation, Fairleigh Dickinson University; Tax Counsel
McCusker Anselmi Rosen & Carvelli
Mr. Skarbnik is full professor in the University’s Masters in Taxation Program. In his law practice, he... | Read More
Mr. Skarbnik is full professor in the University’s Masters in Taxation Program. In his law practice, he concentrates on corporate, shareholder, tax, and trusts and estates law and brings additional expertise as a certified public accountant. He handles estate planning, estate administration, business structuring, business purchases and sales, and other issues involving individual and corporate taxation, and estate and gift taxation. He also advises clients on the formation of limited liability companies, corporations, partnerships, and Subchapter S and C corporations, among other entities, across a wide range of industries and professions. He often gives presentations before tax professionals and also writes frequently in legal and tax publications.
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