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.

Prerequisites

Basic working knowledge of individual and business taxation

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

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