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 ...

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 ...

Understanding passive activities When you invest in something like a rental property but aren’t deeply involved in its day-to-day management, the IRS considers this a passive activity. It’s not about ...

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 ...

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 ...

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 ...