This CPE course examines tax deductions and treatment of different types of residential rental activities that a 1040 practitioner can expect to run into.
1 min read
Amy M. Wall, EA, MBA, is a Canopy CPE/CE course instructor.
Back in the day, the only type of rental we dealt with was a plain, old, ordinary rental property with year-long leases. But with the advent of apps that connect landlords with potential tenants, it seems that there are now endless opportunities for taxpayers to make some extra money by renting out real estate. And not only has residential rental activity become more common than ever before, but the different types of rentals are downright mind-boggling. Activities like Airbnb and HomeAway add even more complexity to our tax returns.
Schedule E (Form 1040), Supplemental Income and Loss, is a catch-all form for these many types of rental real estate activities. This might give tax preparers the illusion that all these different types of rentals are treated the same way on the tax return—but that’s not the case. The allowed deductions and methodologies of allocating deductions between personal and rental use differ dramatically from one type of rental to another.
Looking for more information on this topic? Well, you’re in luck. Canopy’s new CPE course examines the tax treatment of the many different types of residential rental activities that a 1040 practitioner can expect to bump into. We’ll utilize a helpful flow chart to differentiate principal residences from vacation homes and vacation rentals, learn what constitutes a personal use day for the taxpayer (you may be surprised), discuss depreciation as it applies to residential rentals and explain the differences between the IRS and Tax Court methodologies of allocating deductions.
We’ll also talk about niche topics such as self-rentals, not-for-profit rentals, employees renting office space to employers, and other variations on the theme.
Finally, we’ll review those rental activities that rise to the level of a trade or business, which should then be reported on Schedule C.
Take your real estate rental skills to a whole new level with this Canopy course on residential real estate taxation! Sign up for the course here.
Explore more courses in Canopy’s free CPE/CE library.
Explore more of our recent Articles, User Stories, and Ebooks.
1 min read
4 min read
Canopy takes the headaches out of client management by offering a way to keep client info organized.
I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.
This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.
The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.
Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.
It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.
Submit this form, and we will be in touch soon to give you a custom demo.
Set a time for one of our product specialists to give you a guided tour practice.
Leave a comment!