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Mastering Form 8582 Passive Activity Loss Reporting: An Advanced Program on Calculations, Grouping and Tying to 1040

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, June 29, 2023

Recorded event now available

or call 1-800-926-7926

This course will provide tax advisers with an advanced guide to calculating and allocating passive activity losses. The panel will go beyond the basics on the passive activity rules and will offer a comprehensive, practical guide to mastering the complexities of calculating passive activity losses for reporting. The panel will review preparing schedules for tracking loss restrictions, carryforwards, and grouping and allocating losses among multiple passive activities.

Description

The passive activity loss limitation rules have long challenged tax advisers and compliance professionals. Recognizing whether a taxpayer's involvement in an activity rises to the level of material participation not only confuses taxpayers and their advisers but taxpayers' positions are frequently subject to IRS examination and challenge.

Classifying an activity as active or passive is just one challenge facing tax advisers. Once the taxpayer's activities have been identified as being subject to passive activity loss limitations, the tax adviser must accurately report those activities on Form 8582, including supplemental worksheets and disclosures.

Tax professionals must navigate available elections, ensure that the grouping of activities conforms to Treasury regulation rules, and maintain accurate suspended loss carry-forward schedules.

When a taxpayer has significant real estate investments, incorrectly sorting out which losses can offset ordinary income from business activities can have costly tax consequences. The IRS continues to focus on passive income and losses since the imposition of the 3.8 percent net investment income tax.

Listen as our experienced panel provides a comprehensive and practical guide to the mechanics of reporting passive activity loss limitations on Form 8582, using detailed illustrations and sample completed forms to offer useful tools for mastering the reporting mechanics of passive activity losses.

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Outline

  1. Identifying passive activities to be reported on Form 8582
    1. Introduction
    2. Material participation rules
    3. Management and investment activities
  2. Rental activities
  3. Grouping rules and available elections
  4. Real estate professional
  5. Practical considerations
  6. Form 8582
  7. NIIT reporting issues

Benefits

The panel will explore such topics as:

  • Completing Form 8582 Worksheets
  • Properly coding passive activities, including real estate professional substantiation
  • Reporting passive activity losses from publicly traded partnerships
  • Grouping disclosure rules and regrouping activities to potentially meet the material participation standards for non-passive activity
  • NIIT calculations and exclusions

Faculty

Alfonsi, John
John T. Alfonsi, CPA
Managing Director
Cendrowski Corporate Advisors

Mr. Alfonsi has 25 years of tax consulting, business valuation, litigation support and forensic accounting experience....  |  Read More

Castelli, Thomas
Thomas Castelli, CFP, CPA
Partner
Hall CPA

Mr. Castelli's areas of focus are tax planning

 |  Read More

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