Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1 Limitations (2 hours - late morning) - Webcast
Overview
This course explores the complex passive activity loss (PAL) rules under §469 with a focus on real estate activities and partnership K-1 reporting. Participants will learn how material participation, real estate professional status, grouping elections, and disposition rules affect the deductibility of losses. Practical examples demonstrate how PAL rules interact with basis, at-risk, and §461(l) limitations.
Highlights
- Passive activity loss (PAL) rules under IRC §469
- Passive versus nonpassive activity classification
- Material participation and real estate professional requirements
- Partnership K-1 reporting and common PAL pitfalls
- Coordination of PAL rules with basis, at-risk, and §461(l) limitations
- Disposition rules and strategies for utilizing suspended passive losses
Designed For
CPAs and tax professionals
Objectives
- Distinguish passive from nonpassive activities under §469
- Apply material participation tests and real estate professional rules
- Analyze K-1 reporting and common PAL traps
- Coordinate PAL rules with basis, at-risk, and excess business loss limitations
- Identify planning opportunities to unlock suspended passive losses
Leader(s):
Leader Bios
Nicholas Preusch, Don Farmer Tax Education
Nick Preusch, CPA, J.D., LL.M., MSA, has a primary focus of performing tax services relating to emerging issues and complex tax transactions. He works closely with businesses and individuals to find tax efficiencies through ever-changing tax legislation.
Nick started his career with the Internal Revenue Service (IRS) as a revenue agent, and then as an attorney at the IRS National Office in Washington, D.C., where he was the lead attorney for several significant tax ethics cases.
Nick co-authored Tax Preparer Penalties and Circular 230 Enforcement, a textbook published by Thomson Reuters. He has also been published in the AICPA's Tax Advisor and Journal of Accountancy along with CCH's Journal of Tax Practice and Procedure. In 2017, he was named one of the VSPCA's Top 5 Under 35. In 2018, he was named to CPA Practice Advisor's Top 40 Under 40. In 2018, he was part of the AICPA's New Face of Tax ad campaign. Nick has been a member of the AICPA's Tax Practice Responsibilities Committee, Tax Executive Committee and Professional Ethics Executive Committee.
(4/15/26)
Non-Member Price $109.00
Member Price $89.00