BarbriSFCourseDetails
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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

    Friday, February 28, 2025

  • 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 webinar will provide an overview of elections that should be considered for real estate investors, rental properties, and entities holding real property. Our panel of real estate strategists will convey when tax professionals should consider each election and provide examples of their application.

Faculty

Marcus E. Dyer
Principal, Team Leader of Tax Controversy
Withum Smith + Brown, PC

Mr. Dyer manages and reviews all aspects of federal and state tax compliance for C-corporation, S corporation and partnership returns, including consolidated C-corporation returns. He advises businesses on a wide array of tax matters including but not limited to reorganizations and employee benefits. He manages and reviews all aspects of the preparation of high net worth individual returns and conducts tax research on federal and state tax issues. He also handles tax controversies, including at the examination, appeals and collections stages.

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Jeremias Ramos
Senior Tax Manager
Sensiba

Mr. Ramos has more than seven years of public accounting with a focus on tax services. His expertise lies within the real estate and professional services industries and high net worth individuals.

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Description

Many elections are available for real estate entities and rental properties. Section 1.469-4(c) allows applicable businesses to elect to be grouped for tax purposes. This election could help circumvent passive loss limitations in two ways. Electing to group activities can allow the group to pass the material participation test and absorb the passive losses from a property. It could also be used to group an active trade or business with a self-rented property, allowing passive losses from the latter to reduce the income from the former.

A Section 266 election became more valuable after TCJA, which capped the state and local tax deduction at $10,000. Section 266 allows costs for unimproved real property, including taxes, interest, and carrying charges, that would not be currently deductible, to be capitalized. This provides an opportunity for a future deduction for an expense paid that would otherwise be lost. A similar election under Section 266 is available for the construction or improvement of any real property.

A properly made election for an eligible taxpayer can reduce their tax liability significantly. Not making an available election can prove costly. Real estate advisers need to know the elections available, when they apply, and how to file these tax-saving elections properly.

Listen as our astute panel reviews real estate elections and how they are applied to reduce taxes.

Outline

  1. Real estate elections: introduction
  2. Real estate professional
  3. Section 266 election
  4. De minimus safe harbor
  5. Routine maintenance
  6. Safe harbor for small taxpayers
  7. Grouping election
  8. Other elections
  9. Examples

Benefits

The panel will review these and other critical issues:

  • When a taxpayer should consider making an election under Section 266 to capitalize certain costs
  • What are the criteria for a real estate professional?
  • When a taxpayer could benefit from a grouping election under Section 469
  • Real estate elections that should be considered for taxpayers owning real property

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify properties that qualify for a Section 266 election
  • Determine taxpayers who would benefit from a grouping election
  • Decide how to elect the de minimis safe harbor
  • Ascertain which taxpayers qualify for the safe harbor for small taxpayers

  • 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.

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).