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Real Estate Professional

IRS Explains Who Is A Real Property Broker Under The Passive Activity Loss Rules

IRS Explains Who Is A Real Property Broker Under The Passive Activity Loss Rules

Chief Counsel Advice 201504010   In Chief Counsel Advice (CCA), IRS has concluded that a real estate agent who brings together buyers and sellers of real property can be a so-called “real estate professional” who is engaged in a real property brokerage trade or business as described in Code Sec. 469(c)(7)(C) of the passive activity […]

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Tax Court: Large loss allowed for taxpayer’s participation in related real estate enterprises

Tax Court: Large loss allowed for taxpayer’s participation in related real estate enterprises

Lamas, TC Memo 2015-59   The Tax Court has held that a taxpayer that stepped in during the 2008 financial crisis to rescue several related family businesses in which he held interests did so as a material participant, not as an investor. On the facts, the passive activity loss rules of Code Sec. 469 didn’t […]

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Taxpayer wasn’t real estate professional; losses barred by passive activity rules

Taxpayer wasn’t real estate professional; losses barred by passive activity rules

Schumann, TC Memo 2014-138 The Tax Court has determined that an individual who was the president and majority shareholder of a number of businesses did not qualify as a real estate professional for either of two years at issue. The Court also determined that: a) the rental income that he received for the use of […]

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Separate activity treatment doesn’t affect passive loss real estate professional test

Separate activity treatment doesn’t affect passive loss real estate professional test

Chief Counsel Advice 201427016 In Chief Counsel Advice (CCA), IRS has concluded that a taxpayer’s failure to make the election under Reg. § 1.469-9(g) to treat all rental real estate activities as one activity doesn’t affect the application of the passive activity loss (PAL) real estate professional test. Background. Under the PAL rules, losses from […]

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Tax Court – Taxpayer who says he intended to flip real estate wasn’t in a trade or business

Tax Court – Taxpayer who says he intended to flip real estate wasn’t in a trade or business

Ohana, TC Memo 2014-83. The activities of a taxpayer who owned two rental properties in Israel, then bought two properties in the U.S., lived in one of the U.S. properties, then rented it out and moved into the other U.S. property, weren’t a trade or business, despite his claimed intention to make money from flipping […]

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Tax Court: trust can qualify for real estate professional exception to PAL rules

Tax Court: trust can qualify for real estate professional exception to PAL rules

In Frank Aragona Trust, (2014) 142 TC No. 9142 TC No. 9, the Tax Court has determined that a trust that owned real estate properties and engaged in other real estate activities qualified for the Code Sec. 469(c)(7) exception for real estate professionals and thus wasn’t subject to the passive activity loss (PAL) limitations. In […]

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Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

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Member CA Bar Member Orange County Bar US Tax Court Attorney