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% 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.
Presented By
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.
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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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 90-minute webinar is accredited for 1.5 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
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Date + Time
- event
Wednesday, November 19, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Real estate professional status
II. Material participation test
III. Trade or business income
IV. Aggregation
V. Other tax planning considerations
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?
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.
BARBRI 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.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
BARBRI CE webinars-powered by Strafford-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .
