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Transcript of Schedule E in the Real World All audio is streamed through your computer speakers. There will be...
Schedule E in the Real World
•All audio is streamed through your computer speakers.
• There will be several attendance verification questions during the LIVE webinar that must be answered via the online quiz at the conclusion to qualify for CPE.
• For the archived/recorded version of this webinar, the link to the attendance verification quiz is a final exam on the topics covered during the presentation.
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Schedule E in the Real World
Presented by:Kathy Hettick, EA, ABA, ATP, RTRP Gene Bell, EA, ATA, CFP®, RTRP
National Society of Accountants1010 N. Fairfax StreetAlexandria, VA 22314
800-966-6679www.nsacct.org
Learning Objective
Upon completion of this course, you will better understand the details and preparation issues of Schedule E arising from the major changes that were instituted in 2011.
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Schedule EHot Issues!
• Disclosing Form 1099s• Vacation / Short-Term Rental• Qualified Joint Venture• Self Rental• Net Investment Income Tax! - 2013
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Schedule E• Major facelift happened in 2011
– The devil is in the details!
• Unlike the Schedule D– Just a summary form now
• Check out our Schedule D webinar
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Why do we have a Schedule E?
• IRC §469• Tax Reform Act of 1986• Passive Activities• At-Risk Rules• Pass-Through Entities
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Practice Management Tip
• Have a Process• Have Procedures• Do Your Due Diligence• Ask The Right Questions
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• What’s New?– Lines A & B
•1099 Mystery– Line 1
•Ask first! There is a code
Schedule EPage 1
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Schedule EPage 1
• What’s New?– Lines A & B
•1099 Mystery– Line 1
•Ask first! There is a code
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Schedule EPage 1
– Line 2•Fair Rental Days•Personal Use Days•Qualified Joint
Venture?
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Vacation HomeShort Term Rental
• IRC §280A• 14 Day Rule• Reporting Income• Allocation of Expenses
– 9th and 10th Circuit Court Rulings
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Qualified Joint Venture• Must be Husband and Wife
• New for 2011
• Both Must Materially Participate•IRC §469-5T – yep, temporary
• Community Property State Issues• Simple Election – Is that a problem?
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• Passive Activities• Non-passive Activities• Real Estate Professionals
–Rev Proc 2011-34• Exceptions – of course!
Passive Activity Loss Rules
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Self-Rental!• Know and Understand the Rules• Income is Non-Passive Income• Losses are Passive
– Court Cases• Carlos v.Comm• Sidell v. Comm
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Schedule EIncome or Loss
• More Detail• Line 3 - Form 1099-K – Dropped?• Line 4 – Change from 2011• Line 23!
– Reconciliation of Amounts Reported
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2011 Schedule E
2012 Schedule E
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Schedule EIncome or Loss
• More Detail• Line 3 - Form 1099-K – Dropped?• Line 4 – Change from 2011• Line 23!
– Reconciliation of Amounts Reported• Net Investment Income Tax!
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Schedule E Page 2
• Part II– Income or Loss from Partnerships– Passive vs. Non-Passive– Loss Rules - Basis, Basis, Basis– Unreimbursed Expenses - UPE
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Schedule E Page 2• Part II…………………part 2
– Income or Loss From S Corporations– Passive vs. Non-Passive– Loss Rules - Basis (again)– No Such Thing as “Unreimbursed
Shareholder Expenses”
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Schedule E Page 2• Part III
– Income or loss from estates and trusts– Again with the passive and non-passive!
• Part IV– Income or loss from REMICs– Schedule Q, Form 1066
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Schedule E Page 2• Part V – Last but not Least!
– Farm rental income – Form 4835– Reconciliation of farming and fishing
income – read the instructions!– Reconciliation for real estate
professionals•IRC §469(c)(7) •Agarwal TC Summary
Practice Management Tip
Ask yourself, have you;
Been ReasonableBeen PrudentBeen EthicalAsked the Right Questions
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Upcoming Webinars presented by Kathy Hettick & Gene Bell
November 14th: Self-Rental Tax Traps-Are you in Danger? Are Your Clients?
Don’t forget to check out the archived webinars!Preparer Penalties – Are you at Risk?Schedule D in the Real World
http://webinars.nsacct.org