2024 Real Estate Tax Issues: Passive Activity, Self-Rental & Section 199A

Overview

This program will provide a detailed analysis of the real estate professional passive activity rules, including forms reporting examples, and integrates those rules with when real estate is considered a "business" under the Section 199A flow-through entity deduction. A detailed analysis of the self-rental passive activity rules will be given, including forms reporting examples and integrates them with the flow-through entity rules related to self-rental.

**Please Note: If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to kori.herrera@acpen.com.

Highlights

S corporations) entity’s reporting on Form 1040
How "real estate business" is interpreted under the Section 199A rules and how it integrates with the passive activity rules; Real estate professionals and the Form 8582 (Passive Activities)
How to make the "grouping" election for passive activities and the flow-through deduction
Definition of self-rental property – both for Sections 199A and 469
Self-rental income from directly owned properties and reporting on Form 1040, Schedule E, page 1
Self-rental income from indirectly owned (partnerships, S corporations) and reporting on Form 1040, Schedule E, page 2
Self-rental property and the Form 8582 (passive activity), the flow-through entity grouping election, and "former passive activities" rules
A deep-dive look at the Section 199A flow-through entities deduction
Calculation of qualified business income
Application to rental real estate – “safe harbor” rule and aggregation rules

Prerequisites

Basic working knowledge of individual and business taxation

Designed For

CPAs working in public accounting and members in industry

Objectives

Identify the passive activity and flow-through entity rules for real estate professionals and self-rental property and show how these situations should be reported on various tax forms
To provide an in-depth discussion of the deduction for income from flow-through for real estate professionals and self-rental property