Leveraging IRC 469 Real Estate Professional Rules for Individual Taxpayers: Avoiding Passive Loss Limitations

This webinar will provide tax advisers with a thorough and practical guide to navigating the real estate professional rules of IRC 469(c)(7). The panel will discuss the general passive loss limitation rules and exceptions for real estate activities, and will detail the material participation standards, grouping rules, and quantitative tests under Section 469(c)(7)(B). The webinar will also provide useful guidance on available aggregation elections to avoid passive loss limitations. An often-crucial aspect of tax planning for individuals with rental real estate is whether their rental activities meet the threshold by which the taxpayer can be classified as a “real estate professional” under the rules of IRC 469. For many individual taxpayers, having rental activities qualify for real estate professional designation can result in significant income tax savings through avoidance of passive loss limitations.