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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Preparer

Date & Time
  • event Date

    Wednesday, June 26, 2024

  • schedule Time

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

  • timer Program Length

    110 minutes

Credit Information

  • 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).

$197.00
CPE
ALL

This course will discuss strategies for real estate professionals, agents, and investors. The release of final Section 199A regulations provided guidelines for the 20 percent QBI deduction and Notice 2019-38 provided a safe harbor that qualifies rental real estate to be treated as a trade or business. The panel will explain 199A and the final regulations, depreciation, grouping under Section 469, aggregating properties under 199A, deductible expenses, and planning techniques for real estate owners.

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

Practitioners have long dealt with grouping elections under Section 469 to meet the material participation rules and avoid passive loss limitations. However, this "grouping" election is irrelevant to the "aggregation" of properties under 199A. In other words, properties may be "grouped" one way to avoid passive loss limitations and "aggregated" another way to maximize the 20 percent deduction under 199A. Whether or not making the election to aggregate, losses from QBI entities are allocated pro-rata to profitable entities, effectively lowering total income for the 20 percent deduction. Meeting the criteria for the aggregation election is complicated, but the payoff can be tremendous.

In addition to the complexities of QBI, there are 163(j) interest limitations and new depreciation rules brought about by the Tax Act. Additionally, determining the specific criteria for qualifying real estate as a trade or business under Section 162 remains uncertain. Real estate may be the practice area most significantly impacted by tax reform, but it is also an area with significant planning opportunities.

Listen as our panel of experts explains the complexities of the new 199A safe harbor, its interplay with the grouping election under Section 469, the higher depreciation limits, changes to meals and entertainment, and the effects of these changes on real estate enterprises.

Outline

  1. 199A and the safe harbor
  2. Aggregation and 199A
  3. Grouping under Section 469
  4. 163(j) interest limitation
  5. Depreciation
  6. Deductible expenses
  7. Best practices for real estate enterprises

Benefits

The panel will review these critical issues:

  • Meeting the trade or business safe harbor
  • Aggregating real estate properties under 199A
  • Grouping properties to materially participate
  • Maximizing the higher depreciation thresholds
  • Maximizing the 20 percent QBI deduction

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Determine the application of IRC 199A to real estate enterprises
  • Ascertain how to maximize the 20 percent QBI
  • Distinguish aggregating real estate properties under IRC 199A and grouping properties to establish material participation
  • Identify the impact of the IRC 163(j) interest limitation rules
  • Recognize the safe harbor under IRC 199A and its application to rental real estate professionals
  • Verify that a rental real estate enterprise qualifies as a trade or business

  • 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 sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

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).