Real estate joint ventures need not be classified as passive activities

Article Abstract:

Real estate investment is generally considered a passive activity, but there are many exceptions to the passive classification in IRS Regulations. Section 469 of the Temporary Regulations provides rules to determine whether an activity be classified as passive. The approach to defining an activity under the Regulations uses a building-block approach in which taxpayers' undertakings are broken down into operations which are then combined into undertakings. Undertakings may be an activity themselves or may be combined into an aggregate to form an activity. Planning opportunities arise in combining rental operations or undertakings: separate income-producing operations can qualify as separate activities, subject to the requirement that rental ventures are segregated from business and trade ventures.

Real estate investment, Real estate investments

---

Payments for political post not deductible

Article Abstract:

Political contributions made for public policy purposes, such as to acquire public office, are considered nondeductible despite their consideration as ordinary and essential business expenses. Such a ruling was made by the Tax Court in the case of Cloud, 97 TC No 43, where payments were made to a political party for the purpose of gaining an appointment as registrar of motor vehicles. The court set out to prove that the fee splitting of all payments made were ordinary, and as such were nondeductible. The specific areas where business expenses for political purposes are considered nondeductible are discussed.

Finance, Campaign funds, Political campaigns

---

Exclusion still available for deductible education

Article Abstract:

A taxpayer can avail of tax deductions for paid educational expenses while employers can avail of tax exclusions for reimbursed educational expenses under Section 127 of the Internal Revenue Code. Costs incurred from availing of an employer-provided educational assistance program, under the said section, may be excluded from a taxpayer's income amounts. Such a deduction would be possible if the expenses of the employer qualifies as a working condition fringe benefit that would lead to the exclusion from the taxpayer's income of the employer's payment.

Employee benefits, Educational assistance, Foreign educational assistance

Similar abstracts:

• Abstracts: New real estate investment vehicle advantageous for qualified plans. HOW TO MINIMIZE THE INCOME TAX IMPACT ON PROPERTY TRANSFERRED FOR SERVICES
• Abstracts: International estate planning. The case for cautious optimism. Happy families
• Abstracts: Default risk in futures markets: the customer-broker relationship. Volatility in wheat spot and futures markets, 1950-1993: government farm programs, seasonality, and causality
• Abstracts: Interindustry differences in the relation between compensation and firm performance variables. A comment on 'A Behavioral Study of the Meaning and Influence on Tax Complexity'
• Abstracts: Points in refinancing some home mortgages may now be currently deductible. Choosing the right type of mortgage and determining how best to treat loan costs

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.