Passive Rental Loss Rules

2 CE Topic
Written By Natalie Kolodij

Summary

Most property rentals fall under being a passive activity. In this class, we will cover the basics of passive losses including when they’re deductible, income limitations, active vs. material participation, former passive activities, and passive loss treatment upon asset disposition. With a focus on real-life situations and impacts, we will look at several common situations involving passive rental activities, and touch on the situations when a rental activity may be non-passive.

Objectives


Upon completion of this session, you will be able to:

  • Calculate a client’s passive loss amount and limitation

  • Understand how to utilize passive losses

  • Plan for the impact of passive losses upon the sale of a rental property

  • Understand the “lazy 1031 exchange” strategy"

  • Identify when a rental activity is non-passive

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CPE information
Duration: 100 minutes

Course level: Beginner

Natalie Kolodij
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