Passive Activity Loss Audit Technique Guide (ATG) - Table of Contents
Publication Date - December, 2004
NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.
This Audit Techniques Guide (ATG) is presented in several chapters. These chapters can be accessed and then printed by following the links in the Table of Contents below. To print the entire ATG please refer to the PDF version.
Table of Contents
- Introduction
- Types of Passive Activities
- What is Passive
- Activity Rules
- Participation Rules
- Form 8582
- Summary
- Exhibit 1.1: Case Law and Ruling
- Exhibit 1.2: Form 8582- Line by Line Comment
- Exhibit 1.3: Common Issues
- In a Nutshell
- The $25,000 Allowance In a Nutshell
- Active Participation Sub-Issue
- Modified Adjusted Gross Income Sub-Issue
- The $25,000 Allowance Supporting Law
- Exceptions to Rental Definition
- Real Estate Professional In a Nutshell
- Real Estate Professional
- Material Participation for Real Estate Pros
- Election to Group Rental Real Estate
- Real Estate Pro: Law
- Equipment Rentals In a Nutshell
- Equipment Leasing Supporting Law
- Vacation Rental In a Nutshell
- Material Participation Sub-Issue
- Summary
- Exhibit 2.1: Rental Decision Tree
- Exhibit 2.2: Modified Adjusted Gross Income Computation
- Exhibit 2.3: Rental Real Estate Losses: Active Participation
- Exhibit 2.4: Real Estate Professional
- Exhibit 2.5: Real Estate Professional- Interview
- Exhibit 2.6: Equipment Rentals
- Exhibit 2.7: Vacation Rentals/Condos/B&Bs/Hotels
- In a Nutshell
- Passive Income
- Supporting Law
- Self-Rental Income
- Lease Land
- Land Held for Investment
- Supporting Law
- Summary
- Exhibit 3.1: Passive Income
- Exhibit 3.2: Self-Rental Property- Income Recharacterization
- Exhibit 3.3: Passive Income Decision Tree
Chapter 4: Material Participation
- In a Nutshell
- Activity Defined
- Grouping Activities
- Significant Participation Activities (SPA)
- Indicators
- What are My Issues
- Treatment of Former Passive Activities
- Methods of Proof
- Qualifying Participation
- General Rule
- Non-Qualifying Time
- Supporting Law
- Summary
- Exhibit 4.1: Material Participation
- Exhibit 4.2: Material Participation Decision Tree
- Exhibit 4.3: Significant Participation Activity (SPA)
- Exhibit 4.4: Activity Log
- In a Nutshell
- Entire Interest
- Partial Interest
- Fully Taxable Transaction
- Form 8582: Dispositions with Net Losses
- Dispositions with Overall Net Gains
- Form 8582: Dispositions with Net Gains
- Summary
- Supporting Law
- Exhibit 5.1: Dispositions
- Exhibit 5.2: Dispositions Triggering Losses
- Exhibit 5.3: Income Issues on Disposition of Passive Activity
- Overview
- Material Participation for Corporations
- Personal Service Corporation
- Audit Considerations PSCs
- Audit Consideration on Closely Held C Corporations
- Supporting Law
- Trusts In a Nutshell
- Trust Rental Losses
- Supporting Law
- Trusts Material Participation
- Supporting Law
- Trusts Disposition, Distribution & Gifts
- Supporting Law
- Limited Liability Companies (LLCS) in a Nutshell
- Material Participation for LLCs
- Self-Charged Interest in a Nutshell
- Summary
- Exhibit 6.1: C Corporations: Passive Activity Issues
- Exhibit 6.2: Trusts Passive Loss Issues
- Exhibit 6.3: LLCs: Passive Activity Issue
- Exhibit 6.4: Self-Charged Interest
Chapter 7: Interaction with other IRC Sections
- Introduction
- Investment Interest Expense
- Investment Income
- Investment Interest Expense
- Investment Interest Examination Techniques
- Investment Interest Supporting Law
- Rental of Personal Residence In a Nutshell
- Supporting Law
- Interest Issues
- Supporting Law
- Net Operating Losses
- Working Interests in Oil & Gas Property
- Trading Personal Property for an Owner’s Account
- Casualty Losses
- Low Income Housing Losses
- Summary
- Exhibit 7.1: Investment Income and Investment Interest Expense
- Exhibit 7.2: IRC§469(j)(7)-Interest on Rental Residence
Chapter 8: Activities (Grouping Rules)
- In a Nutshell
- Five Factors
- Rentals
- Limited Partners
- C Corporations
- Partnerships and S Corporations
- Consistency Requirements
- Anti-Abuse Provisions
- Supporting Law
- Summary
- Exhibit 8.1: Activities (Grouping Entities)
- In a Nutshell
- Types of Credits
- Application of Credits
- Special Rental Real Estate Allowance
- Dispositions
- Supporting Law
- Summary
- Exhibit 9.1: Low Income Housing and Passive Loss Limitation
- Exhibit 9.2: Passive Loss Credit Decision Tree
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Page Last Reviewed or Updated: 2013-03-12
