Mastering Form 8582 Passive Activity Loss Reporting: An Advanced Program on Calculations, Grouping and Tying to 1040

The passive activity loss limitation rules have long challenged tax advisers and compliance professionals. Recognizing whether a taxpayer's involvement in an activity rises to the level of material participation not only confuses taxpayers and their advisers but taxpayers' positions are frequently subject to IRS examination and challenge.

Classifying an activity as active or passive is just one challenge facing tax advisers. Once the taxpayer's activities have been identified as being subject to passive activity loss limitations, the tax adviser must accurately report those activities on Form 8582, including supplemental worksheets and disclosures.

Tax professionals must navigate available elections, ensure that the grouping of activities conforms to Treasury regulation rules, and maintain accurate suspended loss carry-forward schedules.

When a taxpayer has significant real estate investments, incorrectly sorting out which losses can offset ordinary income from business activities can have costly tax consequences. The IRS continues to focus on passive income and losses since the imposition of the 3.8 percent net investment income tax.

Listen as our experienced panel provides a comprehensive and practical guide to the mechanics of reporting passive activity loss limitations on Form 8582, using detailed illustrations and sample completed forms to offer useful tools for mastering the reporting mechanics of passive activity losses.

1. Identifying passive activities to be reported on Form 8582
   1. Introduction
   2. Material participation rules
   3. Management and investment activities
2. Rental activities
3. Grouping rules and available elections
4. Real estate professional
5. Practical considerations
6. Form 8582
7. NIIT reporting issues

The panel will explore such topics as:

• Completing Form 8582 Worksheets
• Properly coding passive activities, including real estate professional substantiation
• Reporting passive activity losses from publicly traded partnerships
• Grouping disclosure rules and regrouping activities to potentially meet the material participation standards for non-passive activity
• NIIT calculations and exclusions

Learning Objectives

After completing this course, you will be able to:

• Recognize proper reporting and preparation of Form 8582
• Identify whether a taxpayer's activity is active participation
• Identify whether a taxpayer's activity is passive participation
• Determine accurate reporting for a suspended loss carry-forward schedule

• 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 at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. The webinar assumes specific knowledge and understanding of the Section 469 Passive Activity Rules, the material participation rules, identifying the tests for determining real estate professionals, recognizing Publicly Traded Partnership K-1 schedules; familiarity with the grouping disclosure rules, familiarity with the Net Investment Income Tax (NIIT).

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).