Recent IRS guidance requires taxpayers to report their groupings of passive activities and any subsequent changes. Often taxpayers wish to combine their participation in multiple activities to meet the test of active participation and get out of the PAL limitations. Learn about the new reporting rules that must be satisfied and limited relief for late elections in this timely 2-hour session.
Update investors in passive activities and their tax return preparers on critical new compliance requirements.
Passive activity overview.
Reg. 1.469-4 rules for grouping of trade or business or of real estate activities.
Rev. Proc. 2010-13 rules for reporting of groupings.
Effect of failure to aggregate real estate activities.
Rev. proc. 2011-34 IRS relief for late elections by real estate professionals.