Statute
IRC §469
7 published works
Tax Controversy Report
No Points for Participation: Passive Activity Rules and Loss Limitations
By Adam Young
Classroom participation points may boost a child’s grade in history class, but merely raising your hand won’t get you far with the IRS. The passive activity loss rules under I.R.C.…
Agricultural Law and Taxation Blog
LLCs and Self-Employment Tax – Part One
OverviewFarmers and ranchers often desire to avoid the payment of self-employment tax. Indeed, avoidance of self-employment tax sometimes seems to be a prerequisite for being engaged in a farming or…
Dollars & Sense
Understanding IRS Rules on Passive Activity Losses
Several abusive tax shelters in the 1970s and 1980s caused Congress to enact rules to prevent taxpayers from deducting losses when a taxpayer doesn’t materially participate in the activity. These…
Agricultural Law and Taxation Blog
Self-Rentals and the Passive Loss Rules
OverviewIn recent weeks, I have written a couple of posts on various aspects of the passive loss rules contained in I.R.C. §469. Indeed, over the past two years, I have…
Agricultural Law and Taxation Blog
Real Estate Professionals and Aggregation – The Passive Loss Rules
OverviewLast April I devoted a post to the general grouping rules under I.R.C. §469. https://lawprofessors.typepad.com/agriculturallaw/2018/04/passive-activities-and-grouping.html Those rules allow the grouping of passive investment activities with other activities in which the…
Agricultural Law and Taxation Blog
IRS To Finalize Regulations On Tax Status of LLC and LLP Members?
OverviewIn its 2017-2018 Priority Guidance Plan, the IRS states that it plans to finalize regulations under I.R.C. §469(h)(2) – the passive loss rules. That provision creates a per se rule…
Wealth Director
Still Waiting For Guidance on Material Participation
In March 2014, I commented on the US Tax Court decision in the Frank Aragona Trust case. In that case, the tax court disagreed with the Internal Revenue Service’s arguments…