• videocam Live Webinar with Live Q&A
  • calendar_month June 24, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Tax Preparer
  • schedule 110 minutes

Real Estate 199A Aggregation and 469 Grouping Rules: Notice 2019-38, Real Estate and Safe Harbor Election

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About the Course

Introduction

This course will discuss strategies for real estate professionals, agents, and investors. The release of final Section 199A regulations provided guidelines for the 20% 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.

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% 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% 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, the meals and entertainment limitations, and the effects of these changes on real estate enterprises.

Presented By

Matthew E. Foreman
Partner, Co-Chair Taxation Practice Group
Falcon Rappaport & Berkman LLP

Mr. Foreman co-chairs FRB’s Taxation Practice Group and advises businesses on the tax effects of a variety of corporate transactions, including taxable and tax-free reorganizations, mergers, sales, and acquisitions. He designs and implements tax-efficient structures for U.S.-based businesses to expand abroad and invest in foreign joint ventures. Mr. Foreman drafts tax memoranda and opinions on a variety of subjects, including tax-free reorganizations, tax-efficient return of capital to owners, Qualified Small Business stock, and various state pass-through entity taxes. He defends clients from audits from the IRS and various state tax agencies, including appealing audit determinations. Mr. Foreman advises clients on a variety of tax issues related to cryptocurrencies, including initial coin offerings (ICOs), taxability of staking and air drops, and the imposition of Sales and Use taxes on the issuance of non-fungible tokens (NFTs). He drafts tax portions of Operating and Shareholder Agreements for businesses in different industries. Mr. Foreman has extensive experience in a variety of SALT issues, especially New York State residency audits and state Sales and Use tax nexus issues post-Wayfair.

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Brian T. Lovett, CPA, JD
Partner, Team Leader, Real Estate - Strategic Tax Planning
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 Withum, Mr. Lovett was with a “Big 4” accounting firm, working closely with large, multinational real estate investment companies.

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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).

Date + Time

  • event

    Wednesday, June 24, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. 199A and the safe harbor

II. Aggregation and 199A

III. Grouping under Section 469

IV. 163(j) interest limitation

V. Depreciation

VI. Deductible expenses

VII. Best practices for real estate enterprises

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% QBI deduction

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% 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 their respective partners and shareholders.


BARBRI, 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

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 Barbri-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 .