The Disappearing Tax Breaks – Working with and Around the At-Risk and Passive Activity Rules


Tuesday, July 18, 2023 · 2:00 – 3:40 PM ET

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Continuing Education

CPE Program Knowledge Level: Overview
2 CPE Credit; NO prerequisites or advance preparation
CTEC Course #: 3022-CE-0160
IRS/RPO Approved Program
#7ZBUJ-T-00111-23-O (Online/Group) Live (Group-Internet Based)
#7ZBUJ-T-00111-23-S (QAS Self Study) Archive
Federal Tax Law (2 Hours)

Program Content

This online learning program, presented as a live webcast, will be also archived for QAS Self Study. The program will be available for viewing for 12 months after the live webcast. A panel of IRS and industry experts will present the content during a live, interactive discussion, where participant questions can be submitted. Questions will be answered live on the program or posted on the Resources page.

The program, through a lively round-table discussion and real time interaction with the audience, examines the limitations imposed on tax deductions and credits by the at-risk and passive activity rules. The program will focus on determining the amount at risk in an activity and how that determination serves as a limit on tax deductions. Panelists also will examine the passive activity rules, how they operate, and the limitations they impose. In both cases, the panel will explore the taxpayers and activities that are subject to the rules

By the end of the program, participants will have a practical understanding, through accurate, current, and effectively designed communications, of the limitations imposed by both the at-risk rules and the passive activity rules.

Program Learning Objectives

  1. Identify who is subject to the at-risk rules and how the rules operate.
  2. Identify the limitations on deductions imposed by at-risk rules.
  3. Identify who is subject to the passive activity rules and how the rules operate.
  4. Identify the limitations on deductions and credits imposed by at-risk rules.

Program Outline

  • At-Risk Rules in General
    • Taxpayers and Activities Subject to the Rules

  • Deductions Under the At-Risk Rules
    • Order of Deductions
    • Recapture of Prior Deductions

  • Determining the Amount at Risk
    • Borrowed Amounts
    • Avoidance of At-Risk Rules
    • Computation of At-Risk Amount

  • Qualified Nonrecourse Financing
    • Financing from Related Person
    • Transfer of Property

  • Passive Activity Loss Rules in General
    • Taxpayers Subject to the Rules
    • Activities Subject to the Rules
    • Material Participation

  • Identification of Separate Activities
    • In General
    • Limitation on Grouping
    • Regrouping
    • Reporting Grouping

  • Limits on Rental Activities
    • Rental Defined
    • Self-Rented Property
    • Rental Incident to Development
    • Rental of Nondepreciable Property
    • Active Participation in Rental Real Estate
    • Real Property Business Exception

  • Treatment of Losses and Credits
    • Computing Deductible Loss
    • Closely-Held Corporation's Loss
    • Disallowed Losses
    • Passive Activity Credits

Panelists

Moderator

Alan Pinck, EA
A. Pinck & Associates

Alan Pinck is an Enrolled Agent with over 30 years of tax preparation experience in the San Francisco Bay Area. He has built a practice specializing in individual, small business tax preparation and audit representation. You have seen Alan presenting at NTPI events, CSEA Super Seminar, Spidell Publishing as well as a variety of other presentations for tax groups and small business associations. Having represented thousands of tax returns in audit, Alan has obtained tremendous insight of the audit process as well as knowledge on a wide variety of tax issues.

IRS Panelist

Coming soon!

Industry Panelists

Coming soon!

Content Consultant

David F. Windish, J.D., LL.M
Content Consultant

David F. Windish, J.D., LL.M. in taxation, is a tax attorney and consultant. He has served as an instructor of tax-advantaged investments at the New York Institute of Finance; an Instructor of business law at the U.S. Merchant Marine Academy, Kings Point, N.Y.; and an adjunct professor at George Mason University, Fairfax, Va. He has also served as executive editor for Tax Analysts; managing editor for Business Strategies, published by CCH; and senior editor for the Institute for Business Planning.

Mr. Windish is the author of Practical Guide to Real Estate Taxation, published by CCH and currently going into its sixth edition. Earlier works include Tax Advantaged Investments and Investor's Guide to Limited Partnerships, both published by the New York Institute of Finance. Through the Center for Video Education, he authored continuing education courses dealing with real estate and closely held corporations. Those courses included readings, case studies, and videotape segments.

Mr. Windish is a graduate of Rutgers University Law School and the New York University School of Law, Graduate Division. He has been heard as a guest speaker at professional meetings and seminars and on popular radio programs.

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