Common Mistakes with Passive Activities – IRC 469 - IRS Form 8582 - John R. Dundon II, Enrolled Agent
8069
post-template-default,single,single-post,postid-8069,single-format-standard,bridge-core-3.0.1,qodef-qi--no-touch,qi-addons-for-elementor-1.5.3,qode-page-transition-enabled,ajax_fade,page_not_loaded,,qode_grid_1300,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-28.7,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.9.0,vc_responsive,elementor-default,elementor-kit-269
 

Common Mistakes with Passive Activities – IRC 469 – IRS Form 8582

The Perturbing New Treatment of Patents Under the Tax Cut & Jobs Act (TCJA)

21 Nov Common Mistakes with Passive Activities – IRC 469 – IRS Form 8582

Posted at 00:00h in Passive Activity by
Share
  1. Not grouping related activities as one activity
  2. Treating equipment leasing as non-passive by placing the revenue from such on Schedule ‘C’ or Schedule K-1 line 3.  Rentals are passive even if the taxpayer materially participated
  3. Deduct rental real estate losses when AGI is more than $150,000.  The $25,000 Passive Activity Loss Limitation offset is phased out when modified adjusted gross income exceeds $150,000
  4. Real estate professional has 10+ rentals listed all as non-passive.
  5. Schedule ‘E’ net income is reported on Form 8582 as property leased to taxpayer’s corporation or partnership.  Self rented property income is not passive
  6. Reg 1.469-4(d) prohibits grouping a rental activity and a business unless each activity is owned in identical percentage and property is leased to the business.  A rental can never be grouped with a ‘C’ corp.
Tags:
, ,
Print page


Share