Course Information

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Passive Activity Loss Limitations (Second Edition)
Author: CCH Editorial Staff

Description:
Passive activity loss rules limit ordinary taxpayers' ability to shelter their personal income using deductions and credits from activities in which they have little or no involvement. The rules only allow use of deductions and credits to offset passive income related to the activity, unless the taxpayer can prove that he or she participated materially. Although the passive activity loss rules contain many nuances, some basic principals run throughout.

This course provides an overview of the passive activity loss rules. Topics covered include: passive activities; passive activity income; material participation; rental activity; trust and estate issues; personal service corporations and closely-held C corporations; election to group passive activities; disposition of interest; and alternative minimum tax.

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

  • Distinguish passive losses from ordinary losses
  • Recognize sources of passive activity income
  • Determine when taxpayers have materially participated in an activity
  • Differentiate when rental activity is and is not subject to passive activity loss rules
  • Describe how the passive activity rules apply to trusts
  • Describe the advantages of using a business form regarding passive activity loss rules
  • Determine when taxpayers may group passive activities and why
  • Identify how the alternative minimum tax (AMT) interacts with the passive activity loss rules

Course Details:
Price:  $51.00
Field of Study:  Taxes
Prerequisites:  None
Level:  Overview
Advanced Preparation:  None
CTEC course number:  1075-CE-9733
Course was last updated on:  10/22/10
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Library:
Learning Center Core

Technical Requirements:
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Credit Available For: Units
CPE 3.0 CPE
QAS 3.0 CPE
CFP® (Accepted by the CFP Board) 1.0 CPE
Enrolled Agent (Accepted by the IRS) 3.0 CPE
CTEC Federal 3.0 CE

Note: Recommended CPE credit is based on a 50-minute hour. Participants earning credits for states that require self-study to be based on a 100-minute hour will receive half the recommended CPE credits for successful completion of this course.

Since Continuing Professional Education requirements vary from state to state and are subject to change without notice, please contact your state board of accountancy for information on your CPE requirements and the applicability of this course to meet those specifications.

CCH has been approved by the California Tax Education Council to offer courses that provide federal and state credit towards the annual "continuing education" requirement imposed by the State of California. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA, 95812-2890, toll-free by phone at (877) 850-2832, or on the Internet at www.ctec.org.

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