Use of management company prevents taxpayer from claiming active participation in rental property.: An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on August 1, 1996. The length of the article is 606 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The Tax Court in a memorandum decision found that taxpayers that owned a condominium that was rented for short periods each summer did not materially participate in the business because the work they did was not regular and continuous. The taxpayers cleaned the unit at the end of the summer and apparently satisfied the 100-hour and safe harbor standards, but a rental agent was hired during the summer to advertise, collect keys and manage maintenance. Because the taxpayers did not materially participate in these activities, their losses were treated as passive.

Citation Details
Title: Use of management company prevents taxpayer from claiming active participation in rental property.
Author: Jennifer J. Bowers
Publication:The Tax Adviser (Magazine/Journal)
Date: August 1, 1996
Publisher: American Institute of CPA's
Volume: 27 Issue: n8 Page: 475(2)

Distributed by Thomson Gale