NB: course will say “Closed” until you’ve registered for the seminar.
Instructor: Lisa Cochell
Rental income is not typically subject to information reporting, and is thus a focus of IRS efforts to increase reporting compliance and decrease the tax gap. This chapter discusses real estate rental activities. It reviews what constitutes rental income and identifies deductible rental expenses. Explains when the tangible property regulations allow deductions for repairs and improvements, and when the at-risk rules and the passive activity loss limits may limit a loss from rental real estate. Discusses two passive activity loss rule exceptions: the rules that apply if a taxpayer qualifies as a real estate professional, and the $25,000 special allowance for passive activity rental losses.
Explains how rental income and expenses are reported on Schedule E (Form 1040), Supplemental Income and Loss, for an individual taxpayer. It provides a comprehensive example of reporting real estate rental activity.
After completing this session, participants will be able to do the following:
✔ Calculate income and expenses for a residential real estate rental
✔ Apply the safe harbors under the tangible property regulations
✔ Know how to characterize a real estate rental expense as an improvement
✔ Understand when there may be self employment tax on rental income
✔ Apply the at-risk rules
✔ Understand how to apply the passive activity loss rules to real estate rental activity
✔ Know how to report rental income and expenses
