Course Description


The taxation of real estate is tricky. Taxpayers can own real estate in a number of different ways, including direct and indirect investments. There are numerous exceptions to being classified as a rental activity, too. How do you know if someone is a real estate professional? In this course, we will explore all these issues and many more! Through real-world examples and discussion, this episode in our Lifecycle Financial Planning series will delve into exceptions to rental status, qualifications for material participation, and requirements for active status. Additionally, we will cover the QBI and Section 1237 safe harbors and touch on some planning ideas related to depreciation recapture. In other words, you'll walk away with lots of exceptions and planning ideas for your real estate clients!

Learning Objectives

  • Recall exceptions to rental status in the Regulations

  • Identify the different types of depreciation recapture that apply to rental properties

  • Recognize tax planning opportunities for personal and vacation properties

  • Identify how the Sec 1237 safe harbor may be used to avoid ordinary income tax treatment on divided land parcel sales

Additional Required Materials

  • Level: Intermediate

  • Field of Study: Taxes (NASBA); Tax Planning (CFP); Federal Taxation (IRS)

  • Who Should Attend: Tax and financial advisors who have clients who own rental real estate

  • Required Knowledge: Basic understanding of tax rules for rental property

  • Advanced Prep: None

Instructor

CPA, CPCU, MST, MBA David Peters

David Peters is the Founder and Owner of Peters Tax Preparation & Consulting in Richmond, VA. He has over fourteen years of experience in financial services, including 3 years in the hedge fund industry and six years in the insurance industry. David was the first-ever Chief Financial Officer at Compare.com - a position he held for over three years. He is a national CPE Instructor/Discussion Leader for the AICPA, Surgent, and Kaplan. He regularly teaches courses in accounting, finance, insurance, and ethics throughout the United States. He holds four Masters degrees and contributes regularly to various CPA publications, including NCACPA’s Interim Report, SCACPA’s CPA Report, and VSCPA’s Disclosures. He was also a co-author of the 2018 Virginia CPA Ethics course – a required course for all CPA’s licensed in the Commonwealth of Virginia.