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 ...

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 ...

Passive income broadly refers to money you don't earn from actively engaging in a trade or business. By its broadest definition, passive income would include nearly all investment income, including ...

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 ...

The Tax Court recently ruled on the same day in favor of the IRS in two unrelated cases involving the passive loss rules for rental activities (see also “ Real Tax Savings in Real Estate,” page 68).

We’ll define both and show you the differences, including which types of income qualify as active and which are passive. Both incomes are required throughout your lifetime, but combining the power of ...

Real estate professional status can provide relief from the Passive Activity Loss Limitation rules and the 3.8% Net Income Investment Tax (“NIIT”), resulting in significant tax savings. Rental ...

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.

Last week the IRS issued Chief Counsel Advice 201427016 clarifying that taxpayers may aggregate their time spent in connection with rental activities to determine whether the taxpayer qualifies as a ...

Warren Buffet once said, “If you don’t find a way to make money while you sleep, you will work until you die.” And, the Oracle of Omaha isn’t exactly wrong. The Bureau of Labor Statistics reported in ...