2024 Self-Rental Real Estate Passive Activity Rules

Overview

Loans, rental agreements, business combinations – what do these all have in common? They all have the potential of creating a related party transaction.  This program presents a detailed analysis of the financial accounting rules for transactions with related parties, as well as compares and contrasts those rules with the AICPA financial reporting framework for small and medium-sized entities.

**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.

Prerequisites

Basic working knowledge of business taxation and passive activity rules

Objectives

• Identify the passive activity and flow-through entity rules for "self-rental property" and show how these situations should be reported on various tax forms

Highlights

• 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)Self-rental property and the flow-through entity grouping election
• Several real-life situations illustrate the various possibilities and discuss the consequences of failing to comply with the reporting standards
• Self-rental property and "former passive activities" rules