DESCRIPTION
This module explores selected Schedule C and rental property topics commonly encountered in practice. Participants examine the hobby loss rules, including the major determining factors used to distinguish a trade or business from a hobby, and analyze the resulting tax outcomes through review of relevant court cases. Through applied exercises, they calculate the home office deduction using both the simplified and actual expense methods and compute net rental income under a client fact pattern. The module also evaluates various tax outcomes for rental properties, including the impact of personal use and the allocation of expenses.
LEARNING OBJECTIVES
- Determine the eligibility requirements and deduction limitations for the self-employed health insurance deduction.
- Calculate the home office deduction.
- Differentiate between a trade or business and a hobby and determine the resulting deductibility limitations.
- Determine the impact of personal use days on the deductibility of rental expenses.
- Evaluate eligibility for the rental real estate safe harbor election, including satisfaction of the 250-hour requirement.
