This course focuses on the application of the passive activity rules to individual partners and shareholders of partnerships and Subchapter S corporations. Upon completing this course, you should be able to: Recognize the passive activity rules as they apply to rental activities conducted through pass-through entities; Identify the tests for material participation to partners and S corporation shareholders; Identify the character of items allocated to partners and shareholders by pass-through entities; Identify how activities conducted through pass-through entities are grouped for purposes of testing under the passive activity rules; Recognize the tax consequences of disposing of passive activities conducted through pass-through entities; and Determine the implications of the passive activity loss rules on the net investment income tax for pass-through entities.