About the Course
Introduction
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.
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, Mr. Lovett 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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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?
Related Courses
Tax Treatment of Guaranteed Payments to Partners: IRC 199A, Section 707 Payments, Priority Allocations
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1:00 p.m. ET./10:00 a.m. PT
