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 ...

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 ...

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 ...

As part of the IRS's continuing efforts to require greater disclosure of tax positions and strategies on returns, it recently released new, mandatory disclosure rules for grouping passive activities.

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 ...

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose. For a link to our podcast covering the Tax Court ...

There is a specific reason why millennials are focusing on making passive income — and the answer isn’t simply to earn more money. According to a September 2022 feature in The New York Times, many ...