Dear Tax Talk,I have a rental property. I have done all the research and am now filling out Schedule E. Here are my questions. 1. What do the passive activity loss rules mean in plain English? Is it ...

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 ...

P is for Passive Activity Rules. The Internal Revenue Service likes to match up income with deductions. And in most cases, when in comes to individuals, if deductions (or losses) exceed income, those ...

One technique for converting otherwise passive activities to nonpassive is grouping them and treating them collectively as a single activity, thereby combining the participation hours and improving a ...

In a 2014 case, 1 the U.S. Tax Court ruled that in some instances a trust can “materially participate” in a trade or business, thus avoiding the “passive activity loss rules” which generally apply to ...

If you’ve read all of my previous write-ups on the final regulations net investment income tax regulations, your loneliness saddens me you know that we’re mercifully nearing our end. Last Tuesday, we ...

The Tax Court held that a surgeon properly classified as passive his income from a limited liability company (LLC) interest in an outpatient surgery center. Facts: The taxpayer, Stephen Hardy, was a ...