This course addresses the practical aspects of §469 and the needed skills to handle pragmatic issues. Fundamentals are reviewed, planning opportunities identified, and creative strategies discussed and evaluated along with remaining traditional approaches. The goal of this instructive program is to understand and solve problems under §469, with an emphasis on tax savings ideas. Readers will overview the proper administration of this complex and often cumbersome provision.
Learning Objectives
• Understand passive loss rules, §469 impact, and determine allowable deductions and income offsets.
• Learn to avoid passive loss rules via material participation and TRA '86 factors for substantial involvement.
• Explore the definition of 'activity,' TRA '86 impact, and the importance of separating activities.
Major Topics
• Material Participation
• Activity Definition
• Passive and Non-Passive Activities
• Passive Activity Loss
• Passive Activity Gross Income
• Passive Activity Deduction
• Passive Activity Credits
• Items Received from Pass-Through Entities
• Interaction with Other Code Sections
