Investors are subject generally to an annual passive activity loss restriction. A passive activity loss is the amount for the taxable year by which aggregate losses from all passive activities exceed ...

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 ...

The passive loss rules are a set of rules that are generally intended to prevent losses from passive activities from offsetting salaries, interest, dividends, and income from “active” businesses. They ...

Aircraft ownership losses are often classified as "passive activity" by the IRS, which means they can only offset passive income, leading to suspended losses if not properly managed. Common mistakes ...

In his Real Estate Securities column, Peter M. Fass, a partner at Proskauer Rose, examines the material participation rules as they apply to multi-member limited liability companies and cautions that ...

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 ...

When it comes to taxes, the difference between passive and nonpassive income is more than just terminology. The IRS treats these two categories very differently, and understanding the distinction can ...

Question: My husband and I are in a high tax bracket and are looking at buying a couple of rental properties to lower our tax bill. Our understanding is that we can depreciate the properties and ...

Failure to properly document material participation prompts a Tax Court ruling that an aircraft rental activity is passive. The Tax Court held that losses from an aircraft rental activity were passive ...