Provides examiners with specific guidance on potential audit issues, issue identification and lead sheets and another job aids. Examples and citation are based on 1994 law.
TABLE OF CONTENTS
CHAPTER 1 AN Summary OF THE LAW AND FORM 8582
- Two Types of Passive Activities 1-2
- Participation Rules 1-5
- Material Participation 1-6
- Issue Identification 1-9
- Form 8582 1-7
- Exceptions to the Loss Disallowance Rule 1-4
- Completion of Form and Worksheets 1-7
- Audit Issues 1-9
- Activity Rules 1-3
- Active Participation 1-6
CHAPTER 2 RENTAL ISSUES
- Vacation Rental Issues 2-10
- Summary 2-20
- Real Estate Professionals 2-15
- Real Estate Issues 2-5
- Limited Partner Issues 2-9
- Issue Identification 2-19
- Income From Self-Rented Property 2-18
- Exceptions to Rental Activities 2-2
- Equipment Rental Issues 2-3
- Automatic Adjustments 2-10
- $25,000 Offset Issues 2-8
CHAPTER 3 MATERIAL PARTICIPATION
- Treatment of Former Passive Activities 3-12
- Surviving Partner of Farmer 3-12
- Substantially All Participation 3-4
- Significant Participation Work (SPA) 3-5
- Rules of Time 3-1
- Retired or Disabled Farmer and
- Quantitative Time Tests 3-2
- Qualifying Participation 3-13
- Proof of Participation 3-12
- Participation Issues 3-15
- Nonqualifying Time 3-14
- More Than 500 Hours 3-3
- Limited Partners 3-10
- Issue Identification 3-15
- General Rule 3-13
- General Rule 3-1
- Facts and Circumstances 3-10
- Computation of Overall Gain or Loss on SPAs 3-6
- Any 5 of 10 Past years 3-9
- Any 3 Years in Personal Service Work 3-9
- 100-500 Hours and Much Than Anyone Else 3-4
