Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1 Limitations
2.00 Credits
Member Price $89
Non-Member Price $109
Overview
This course explores the complex passive activity loss (PAL) rules under §469 with a focus on real estate activities and partnership K-1 reporting. Participants will learn how material participation, real estate professional status, grouping elections, and disposition rules affect the deductibility of losses. Practical examples demonstrate how PAL rules interact with basis, at-risk, and §461(l) limitations.
Highlights
- Passive activity loss (PAL) rules under IRC §469
- Passive versus nonpassive activity classification
- Material participation and real estate professional requirements
- Partnership K-1 reporting and common PAL pitfalls
- Coordination of PAL rules with basis, at-risk, and §461(l) limitations
- Disposition rules and strategies for utilizing suspended passive losses
Prerequisites
None
Designed For
CPAs and tax professionals involved in the world of tax.
Objectives
- Distinguish passive from nonpassive activities under §469
- Apply material participation tests and real estate professional rules
- Analyze K-1 reporting and common PAL traps
- Coordinate PAL rules with basis, at-risk, and excess business loss limitations
- Identify planning opportunities to unlock suspended passive losses
Preparation
None
Leader(s):
Leader Bios
Nicholas Preusch
Nicholas Preusch, CPA, JD, LLM, is a tax manager with PBMares, LLP, in Fredericksburg, VA, where he works with high wealth individuals and mid- to large-size companies focusing on tax controversy and complex tax issues. In addition, Nicholas is an adjunct professor at the University of Mary Washington. Nicholas has been published in the AICPA’s Journal of Accountancy and Tax Adviser, and in CCH’s Journal of Tax Practice and Procedure. He co-authored the textbook Tax Preparer Penalties and Circular 230 Enforcement, published by Thomson Reuters. Nicholas was named one of the VSCPA’s Top 5 Under 35 in 2017. Prior to joining private practice, Nicholas started his career as an IRS Revenue Agent. He later joined the IRS Office of Professional Responsibility as an enforcement attorney. While at OPR, he was the lead attorney on several milestone cases such as Gass and Pezzo. Nicholas is a graduate of Carthage College, degree in Accounting and Business; he has also earned a Master of Science in Accounting from the University of Connecticut, his JD from Case Western Reserve University, and his LLM in Taxation from Georgetown University.
Non-Member Price $109
Member Price $89