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Passive Activity Losses & Recharacterization of Income

Earn two CE Federal Tax with Kelly Myers, MBA, EA

Self-Study IRS Program Number: X9QQU-T-00619-20-S

This session will take a detail view of the income recharacterization provisions within the Passive Activity Loss rules under IRC 469. These provisions are often misunderstood and under applied since most of the provisions require the preparer to proactively identify income that required to be treated as active. The session will take a detailed view of applying the Code and Regulations related to various recharacterization provisions. Attendees will have the opportunity to have questions answered online during the presentation for timely and practical guidance. Knowledge gained with provide attendees a solid platform to proactively apply the recharacterization rules.

Upon completion of the course, participants should be able to:

  • Identify items of income not subject to the passive loss rules
  • Understand the parameters of the recharacterization rules
  • Identify income requiring to be recharacterized to active income
  • Define income items requiring to be recharacterized
  • Determine if a significant participation activity (SPA) income exists
  • Compute the recharacterized amounts of SPA income
  • Apply Net Investment Income Tax to recharacterized income
  • Investigate Tax Planning Considerations
  • Review Cases & Rulings
Note: If you can't attend live, that's okay: go ahead and register and you will automatically receive the recording when it is sent out.