DESCRIPTION
This module explores key tax considerations related to real estate activities, including the classification and tax treatment of rental properties, passive activity loss limitations, real estate professional rules, and the application of self-rental provisions. Participants will also examine planning opportunities and compliance considerations involving the qualified business income deduction for rental real estate, cost segregation studies, and Section 1031 like-kind exchanges. Through discussion, simulated client fact patterns, and computational exercises, participants will apply tax rules to practical real-world scenarios. The module emphasizes identifying planning opportunities, evaluating tax strategies, and determining the potential benefits and limitations of various real estate tax provisions.
LEARNING OBJECTIVES
- Identify different types of rental properties and distinguish their respective tax treatments.
- Analyze passive activity loss (PAL) limitations and identify applicable exceptions to the rules.
- Evaluate the self-rental rules and determine their impact on passive versus nonpassive income classification.
- Determine the qualifications and applicable exceptions of making the Rev. Proc. 2019-38 election.
- Evaluate the potential benefits and drawbacks of performing a cost segregation study for real estate investments.
- Identify the requirements and analyze the potential tax advantages of completing a Section 1031 like-kind exchange.
