Tax Planning for Real Estate Professionals: Passive Activity Rules, Material Participation Tests, NIIT, Aggregation

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

Wednesday, January 12, 2022

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, December 17, 2021

or call 1-800-926-7926

This CLE/CPE course will provide attendees with an in-depth analysis of essential tax planning techniques and challenges for real estate professionals. The panel will discuss the criteria to be a real estate professional for tax purposes, passive activity rules, material participation tests, aggregating rental properties, grouping strategies, and other key tax planning considerations.


Real estate professionals can lower their tax burden by understanding applicable tax laws and implementing effective tax planning strategies. Tax professionals must recognize the compliance and reporting challenges and navigate complex federal and state tax rules applicable to real estate professionals.

Qualifying as a real estate professional and meeting the material participation guidelines can allow taxpayers to avoid rental income or loss classification as passive. Passive losses are often suspended, waiting for either offsetting passive income or the disposition of the property itself. Passive income can be troublesome, subjecting certain taxpayers to the additional 3.8 percent net investment income tax (NIIT). By treating losses as non-passive, taxpayers can utilize the losses to offset other sources of income and avoid NIIT.

Taxpayers often have several rental activities. Each rental activity must meet the material participation rules for real estate professionals unless an election is made under Reg. Sect. 1.469-9(g), allowing real estate activities to be aggregated. The election, however, is binding until specific requirements are met and the election is revoked.

In addition, real estate professionals have access to various other opportunities, such as the application of business depreciation for certain capital assets, the ability to elect out of the interest deduction limitation, capital gains deferral by investing in qualified opportunity zones, and other vital items.

Listen as our panel of real estate taxation experts discusses how real estate professionals meet the material participation tests, passive activity rules, aggregating rental properties, grouping strategies, and other key tax planning considerations.



  1. Real estate professional status
  2. Material participation test
  3. Trade or business income
  4. Aggregation
  5. Other tax planning considerations


The panel will review these and other critical issues:

  • What constitutes a real estate trade or business?
  • Aggregating real estate activities
  • Meeting the material participation test
  • When is rental real estate subject to NIIT?
  • When does real estate qualify for the 199A deduction?


Illiparambil, Nitin
Nitin Illiparambil, CPA, MST

Tax Manager
Eisner Advisory Group

Mr. Illiparambil is a Tax Manager and member of the Real Estate Services Group, with over five years of experience in...  |  Read More

Lovett, Brian
Brian T. Lovett, CPA, JD

Withum Smith+Brown

Mr. Lovett has extensive experience serving the tax needs of both public companies and closely-held businesses,...  |  Read More

Attend on January 12

Early Discount (through 12/17/21)

See NASBA details.

Cannot Attend January 12?

Early Discount (through 12/17/21)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video