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 ...

The principles behind the passive-activity loss limitations rules under Code Sec. 469 and the net investment income Medicare tax under Code Sec. 1411 are similar -- limit business losses from passive ...

Estate planners often must make a decision whether to recommend a family limited partnership (FLP) or family limited liability company (FLLC) to achieve the best federal estate tax savings for a ...

Except as provided below, a passive activity includes any rental activity, without regard to whether the taxpayer materially participates in the activity. 1 A rental activity is any activity where ...

Under the IRA, select renewable energy credits are transferrable, including to individuals and pass-through entities. The transferees of these credits are subject to the passive activity rules of ...

Certain income and expenses of a passive activity are not considered passive activity income or expenses in determining passive activity income and loss: income from interest, dividends, annuities, or ...

Q. My wife and I just received our 2021 tax returns from our preparer, which are on extension. We were shocked to discover that the large and expected rental loss we incurred during 2021 provided us ...

Back in the 1980s, taxpayers with a high tax rate would invest into real estate and other similar investment vehicles and end up with large upfront losses, such as depreciation, that offset their ...

IRC section 469(a)(1) defines a passive activity as one involving the conduct of any trade or business in which the taxpayer does not materially participate. In section 469(a)(2), the statute ...

Question: I just received our 2022 tax returns from our preparer which are on Disaster Relief extension. We were shocked to discover that our large rental loss we incurred during 2022 due to vacancy ...