The National Law Forum

The Blog of the The National Law Review

Category Archives: Estates & Trusts

Tax Court Holds that a Trust can Qualify for the “Real Estate Professional Exception” of Section 469(c)(7)

The Tax Court recently handed down its decision in Frank Aragona Trust v. Commissioner, ruling that a trust can qualify for the real estate professional exception of Section 469(c)(7). By taking into account the actions of the trustees, a trust can be considered to be materially participating in real estate activities. This means that losses …

Continue reading

U.S. Tax Court Rejects Internal Revenue Service’s (IRS) Restrictive View of Trust Material Participation

The U.S. Tax Court recently issued a taxpayer favorable opinion regarding how a trust materially participates in its activities. The court’s holding will make it easier for trusts to currently deduct expenses against non-passive income and to exclude income from the reach of the new 3.8% net investment income tax. In Frank Aragona Trust v. Comm’r, …

Continue reading

Follow

Get every new post delivered to your Inbox.

Join 16,012 other followers