Course Description: This course describes in detail the application of the passive loss rules to losses and credits from investments in passive activities. Covered topics include identifying taxpayers subject to the passive loss rules, the application of the material participation standard in determining whether an activity is passive, the per se passive rental activity rule, rules relating to grouping activities, and the use of passive losses to offset nonpassive gains and income. 

Course Level: Intermediate

Course Prerequisites: None

Delivery Method: Self-study

At the end of this course, you will be able to: 

• Identify passive activities; 
• Distinguish when an owner is deemed material to a business; 
• Identify the purpose of the passive loss grouping function; To identify the methodologies utilized in passive loss grouping; 
• Identify per se restrictions on grouping activities together; and 
• Identify exceptions to the general rules that potentially allow for tax planning.

CPE

2

CLE

N/A