Stop losing money on rental losses—learn how to navigate material participation and professional status rules.
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 of these issues and many more! Through real-world examples and discussion, this episode in our Understanding Real Estate Taxation series will delve into exceptions to rental status, qualifications for material participation, and requirements for active status.
The discussion unpacks the rigid passive activity loss limitation rules, the strict criteria required to achieve real estate professional status, and the specific hour-based tests used to determine material participation in a rental enterprise. By examining the stark differences between passive and non-passive activities, this overview demystifies the heavily scrutinized regulations of the Internal Revenue Code. Professionals will gain a clear, comprehensive perspective on how these complex tax mechanisms intersect, ultimately shaping the tax liabilities and deduction opportunities associated with real estate investments and property management.
Who Should Attend:
Tax and financial advisors with clients who own rental real estate.
CPA, CFP, CLU, CPCU, MST, MBA
David Peters is the Founder and Owner of Peters Professional Education in Richmond, VA. He is registered with the U.S. Securities and Exchange Commission (SEC) as an Investment Advisor Representative (IAR) with Peters Financial LLC. He brings over 20 years of experience in financial services, including three years in the hedge fund industry and six years in insurance. David was the first Chief Financial Officer of Compare.com, where he served for more than three years. He holds four master’s degrees, contributes frequently to professional publications, and is a nationally recognized CPE instructor and discussion leader for Surgent seminars and a former instructor for Don Farmer. David received the AICPA Outstanding Facilitator Award in 2021, 2023, and 2024 as well as Surgent's Outstanding Discussion Leader awards in 2019 and 2022. He also co-authored the Virginia CPA Ethics course in 2018, 2019, and 2020, which is a requirement for all CPAs licensed in Virginia. Through Peters Professional Education, David is the author and instructor for over 125 recorded on-demand CPE courses and leads private trainings, in-person tax seminars, and quarterly live tax update webinars. His areas of instruction include accounting, finance, insurance, financial planning, and ethics, and he regularly teaches professionals across the United States.
