DESCRIPTION

This module provides a review of the §704(d) basis, §469 passive activity, and §465 at-risk loss limitation rules. Each loss limitation builds off each other and can provide a steep challenge for a partner to take a deduction on their tax return. However, this can also be a great tax planning opportunity for taxpayers who are partners in a partnership and the partnership entity itself.

LEARNING OBJECTIVES

  • Review the §704(d) basis limitation rules.
  • Review the §465 at-risk limitation rules.
  • Review the §469 passive activity loss (PAL) rules.
  • Execute the computation of each of the loss limitations.

Prerequisites

4+ Years Professional Experience

Advanced Preparation

None

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