July 23, 2026

Live Webcast

2 CPE Credits

Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1Limitations

July 23, 2026
Live Webcast
2 CPE Credits

Don Farmer's Passive Activity Losses: Navigating Real Estate & K-1Limitations

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    Instructor

    Nick
    Preusch

    View Bio

    Nick Preusch, CPA, JD, LLM, MSA

    Bio

    Nick joined YHB in 2020 with over 15 years of experience in the industry. Nick is a graduate of Carthage College with a BS in Accounting and Business, the University of Connecticut with an MA in Accounting, Case Western Reserve University with a JD, and Georgetown University with an LLM in taxation. Nick has also worked with the Internal Revenue Service as a Revenue Agent and an Attorney with the IRS Office of Professional Responsibility.

    EXPERTISE

    Nick’s expertise includes helping high wealth individual and large business entities with complex tax compliance, along with specializing in international, non-for-profit tax issues, and tax ethics issues. He has used his tax expertise not only to serve his clients, but also his peers. He has authored publications for the AICPA’s Journal of Accountancy, AICPA’s Tax Advisor, NATP’s Tax Pro Journal, and CCH’s Journal of Tax Practice and Procedure and co-authored a textbook, Tax Preparer Penalties and Circular 230 Enforcement, published by Thomas Reuters. He has also lectured nationally on topics such as ethics, complex tax transactions, and IRS practice and procedure.

This course explores the complex passive activity loss (PAL) rules under §469 with a focus on real estate activities and partnership K-1 reporting. Participants will learn how material participation, real estate professional status, grouping elections, and disposition rules affect the deductibility of losses. Practical examples demonstrate how PAL rules interact with basis, at-risk, and §461(l) limitations.

Learning Objectives

1. Distinguish passive from nonpassive activities under §469 2. Apply material participation tests and real estate professional rules 3. Analyze K-1 reporting and common PAL traps 4. Coordinate PAL rules with basis, at-risk, and excess business loss limitations 5. Identify planning opportunities to unlock suspended passive losses

Major Topics

• Passive activity loss (PAL) rules under IRC §469
• Passive versus nonpassive activity classification
• Material participation and real estate professional requirements
• Partnership K-1 reporting and common PAL pitfalls
• Coordination of PAL rules with basis, at-risk, and §461(l) limitations
• Disposition rules and strategies for utilizing suspended passive losses

CPE Credits Available

2 CPE Credits
2
Taxes

Things to Know About This Course

Course Level

  • Intermediate

Professional Area of Focus

  • Tax; Taxation

Prerequisites

None

Advanced Preparation

None

Provider

Don Farmer Tax Education

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