Description

The taxation of real estate is tricky. Taxpayers can own real estate in a number of different ways, including direct and indirect investments. There are numerous exceptions to being classified as a rental activity. How do you know if someone is a real estate professional? In this course, we will explore all these issues and many more. Through real-world examples and discussion, this course will delve into exceptions to rental status, qualifications for material participation, and requirements for active status. Additionally, we will cover the QBI and Section 1237 safe harbors and touch on some planning ideas related to depreciation recapture.

Instructor: Dave Peters, CPA, CFP, CLU, CPCU, MST, MBA

Target Audience

Accounting and finance professionals who wish to know about the taxation of rental real estate

Course Objectives

Understand exceptions to rental status

Identify the different types of depreciation recapture that apply to rental properties

Recognize tax planning opportunities for personal and vacation properties

Identify how the Section 1237 safe harbor may be used to avoid ordinary income tax treatment on divided land parcel sales

Subjects

Rental activities and passive activities

Material participation

Real estate professional status

Active participation status

Depreciation recapture – Sections 1245, 1250, and 291

Vacation homes rented out

QBI deduction and rental properties

Section 1237 safe harbor for divided parcel sales

Practitioner considerations