Tax Equity News

Tax Court Sheds Light on Counting Hours For the ‘Material Participation’ Exception to the Passive Activity Loss Rules

January 22, 2016

David Burton examines the Tax Court’s recent analysis in Leland v. Commissioner, favoring a lawyer’s bid for exception from the passive activity loss rules for his ‘‘material participation’’ of more than 100 hours per year in operations of a farm he owns in another state. ‘‘The application of the greater-than-100-hours standard appears to be a fertile area for litigation,’’ the author writes.

Read the full article here.

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