Tax Reduction Letter - Renting to Your Corporation Does Not Produce Passive Income

Help

RESOURCES

Articles
Business Owner Tools
Tax Professional Tools
Tax Planning Calculators
Tax Saver's Glossary
Helpful IRS Publications

Article Date:

March 2008

Word Count:

448

Renting to Your Corporation Does Not Produce Passive Income

Gregory J. Farris of Gardiner, Maine, owned the building that he rented to his legal practice.

He made a profit on the rent and characterized the profit as coming from a passive activity, which he used to offset passive losses from other properties. The IRS disagreed with the passive income classification and asked Mr. Farris for additional taxes of $13,259; $17,251; and $17,482 for the three years before the court.

The court had a simple decision: if the income from ... Log in to view full article.

Already a subscriber?

Email Address

Password

Log In Send me my password

FREE TRIAL

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?

with a money-back guarantee

Search Help