TAX2309. PIGS and PALS

Passive activities are often the subject of IRS audit and it is crucial for CPAs to focus on engagement, management and communication to limit liability. Loss utilization first requires sufficient basis and thereafter requires adherence to the at risk and passive activity rules. Our session will include both an overview and specific examples for real estate and other trades and businesses. You will gain a comprehensive understanding of how these rules will work with helpful examples and cases.

Learning Objectives:

• Distinguish At-Risk and Passive Activity requirements
• Identify proper grouping and aggregation elections
• Analyze real estate professional standards and qualifications
• Differentiate methods for material participation
• Best practices for substantiation
• Identify significant participation
• Calculations under §461(ℓ) – the final hurdle