Description

It is common for a taxpayer to own more than one property. In some of these cases, the non-primary residence may be rental property, part rental/part personal, or casual rental. In each case, the taxpayer needs to follow the tax rules in determining the income and expenses associated with each of these properties.

In this session, we take an in-depth review of IRC §280A. This section of the Code provides rules for taxpayers claiming a dwelling unit that is rented and sometimes used by the taxpayer during the taxable year. Depending on the situation, the taxpayer must determine the percentage of days associated with rental income, personal use, and non-rental/personal usage to determine the true deductible expenses. Moreover, the taxpayer and tax professional must be cognizant of the proper tax form required by the tax law to report the income and expenses.
Another special tax rule in the Code provides a rule to allow the taxpayer to exclude the income if certain time limits are met. In such cases, the taxpayer also is not permitted to claim any expenses.

Areas covered in Session 

• An overview of the income and deductions for rental property under IRC §280A
• The treatment of income and expenses when the property is rented part of the time and used part of the time personally
• Distinguish personal use from rental
• Illustrate the calculations associated with limited rental use
• Present the reporting rules for rental income and deductions

Why you should Attend

It is common for a taxpayer to own more than one property. In some of these cases, the non-primary residence may be rental property, part rental/part personal, or casual rental. In each case, the taxpayer needs to follow the tax rules in determining the income and expenses associated with each of these properties.

In this session, we take an in-depth review of IRC §280A. This section of the Code provides rules for taxpayers claiming a dwelling unit that is rented and sometimes used by the taxpayer during the taxable year. Depending on the situation, the taxpayer must determine the percentage of days associated with rental income, personal use, and non-rental/personal usage to determine the true deductible expenses. Moreover, the taxpayer and tax professional must be cognizant of the proper tax form required by the tax law to report the income and expenses.

Another special tax rule in the Code provides a rule to allow the taxpayer to exclude the income if certain time limits are met. In such cases, the taxpayer also is not permitted to claim any expenses.

Who should Attend

• Tax preparers
• CPAs
• Accountants
• Local and regional accounting firms
• Financial Planners
• Consultants