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Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Passive Activities: Enabling Clients to Survive an IRS Challenge (PAEC4)

NEW! 4-Hour Program

WHY ATTEND THIS COURSE?

One of the IRS’s favorite exam topics these days involve challenging taxpayers with losses who are claiming to materially participate in an activity, perhaps doing so as a real estate professional. Unfortunately too often taxpayers are woefully unprepared to be able to defend their status. In this course we’ll look at the requirements to show material participation in an activity, as well as to obtain real estate professional status. The course will use recent cases to show where taxpayers are falling short of meeting the documentation standards in the real world.

DESIGNED FOR...

CPAs who advise their clients regarding individual tax planning, particularly those working with clients with real estate holdings.

OBJECTIVE

Participants will be able to:

  • Understand the design of the passive activity provisions of the tax law
  • Test your client’s level of participation in an activity to determine if they are materially participating
  • Advise clients on the types of records they need to keep to be able to survive IRS challenge
  • Recognize taxpayers who may qualify as real estate professionals, as well as those who are falling short of the requirements
  • Help clients plan to achieve maximum tax benefits from their various activities

MAJOR SUBJECTS

  • Activities that are covered by IRC §469 and those that are specifically excluded from such treatment
  • The four passive activity tests that are meant to limit the ability to claim passive losses
  • The two passive activity tests that are meant to prevent the creation of passive income generators
  • The minimum record keeping the courts are requiring to defend material participation in an activity
  • Requirements for a taxpayer to qualify as a real estate professional

COURSE ACRONYM: PAEC4

PRESENTATION METHOD: Group-live

LEVEL OF KNOWLEDGE: Advanced

PREREQUISITES:

  • None

ADVANCE PREPARATION: None

FIELD OF STUDY: Taxes/Individual Income Taxation

RECOMMENDED CPE CREDIT: 4 hours


CPE Sponsor icon

SmartPros®, A Kaplan Company and Loscalzo Institute, A Kaplan Company are 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.