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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Thursday, January 11, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE course will provide attendees with an in-depth analysis of essential tax planning techniques and challenges for real estate professionals. The panel will discuss the criteria to be a real estate professional for tax purposes, passive activity rules, material participation tests, aggregating rental properties, grouping strategies, and other key tax planning considerations.

Faculty

Brian T. Lovett
Partner
Withum Smith + Brown, PC

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses, including all aspects of tax compliance for partnerships and corporations. He advises clients with regard to the structure and tax consequences of new business ventures, and assists with restructuring existing businesses for increased tax efficiency. Prior to joining his firm, he was with a “Big 4” accounting firm, working closely with large, multinational real estate investment companies.

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Sara A. Palovick
Tax Partner
Withum Smith + Brown, PC

Ms. Palovick specializates in real estate, and focuses most of her time in the areas of partnership and individual taxation. She assists in all areas of compliance as well as tax planning and succession planning.

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Description

Real estate professionals can lower their tax burden by understanding applicable tax laws and implementing effective tax planning strategies. Tax professionals must recognize the compliance and reporting challenges and navigate complex federal and state tax rules applicable to real estate professionals.

Qualifying as a real estate professional and meeting the material participation guidelines can allow taxpayers to avoid rental income or loss classification as passive. Passive losses are often suspended, waiting for either offsetting passive income or the disposition of the property itself. Passive income can be troublesome, subjecting certain taxpayers to the additional 3.8 percent net investment income tax (NIIT). By treating losses as non-passive, taxpayers can utilize the losses to offset other sources of income and avoid NIIT.

Taxpayers often have several rental activities. Each rental activity must meet the material participation rules for real estate professionals unless an election is made under Reg. Sect. 1.469-9(g), allowing real estate activities to be aggregated. The election, however, is binding until specific requirements are met and the election is revoked.

In addition, real estate professionals have access to various other opportunities, such as the application of business depreciation for certain capital assets, the ability to elect out of the interest deduction limitation, capital gains deferral by investing in qualified opportunity zones, and other vital items.

Listen as our panel of real estate taxation experts discusses how real estate professionals meet the material participation tests, passive activity rules, aggregating rental properties, grouping strategies, and other key tax planning considerations.

Outline

  1. Real estate professional status
  2. Material participation test
  3. Trade or business income
  4. Aggregation
  5. Other tax planning considerations

Benefits

The panel will review these and other critical issues:

  • What constitutes a real estate trade or business?
  • Aggregating real estate activities
  • Meeting the material participation test
  • When is rental real estate subject to NIIT?
  • When does real estate qualify for the 199A deduction?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify taxpayers who meet the safe harbor requirements to avoid NIIT
  • Determine taxpayers who might benefit from the real estate professional classification
  • Decide when rental real estate activities are a trade or business under federal tax law
  • Ascertain when taxpayers may not benefit from the aggregation election

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and their respective partners and shareholders.

Strafford Publications, Inc. is 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 Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).