income taxation research paper
Research Problem
Chapter 11 Problem 1
In this problem, Carol and her husband Dick want to purchase of a commercial office building near the local community hospital. Carol will also move her medical practice to the new location and rent space for an arm’s length price. They think their rent income will available to absorb passive losses generated by other passive activities they own. We can find answer from Reg. § 1.469-2(f)(6) that if property is rented to a nonpassive activity, the rent income generated is treated as though it is not from a passive activity.
In § 1.469-2(f)(6), I find examples Fransen v. U.S., 98-2 USTC ¶50,776, 82 AFTR2d 98-6621 (D.Ct. La., 1998) and aff’d in 99-2 USTC ¶50,882, 84 AFTR2d 99-6360, 191 F.3d. 599 (CA-5, 1999). These examples can help solve Carol and her husband Dick’s problem. In these examples, the court thinks the regulation is valid. The income received from their rental activity is defined as nonpassive. Here is the position, the building that was rented by this business in which the taxpayer was doing their own business inside, this make the income nonpassive.
There are also some examples that people want self rent their location to receive rent income. The first example is Sidell v. Comm. 2000-2 USTC ¶50,751, 86 AFTR2d 2000-6229, 225 F3d 103 (CA-1, 2000). The second example is Krukowski v. Comm. 2002-1 USTC ¶50,219, 89 AFTR2d 2002-827 (CA-7, 2002). Moreover, Sidney C. Shaw 83 TCM 1194, T.C.Memo. 2002-35 is also a good example for self rent.
Carol and her husband Dick want to receive rent income that can counteract by their suspended passive losses. In this case, the rent income is treated as a nonpassive activity. As it is a nonpassive activity rather than a passive, the benefits that Carol and her husband Dick want to receive is not possible.
Chapter 11 Problem 2
In this problem, Bridget is a limited partnership in a fast-food restaurant. After she netting the passive losses against the gain, none of the gain
Chapter 11 Problem 1
In this problem, Carol and her husband Dick want to purchase of a commercial office building near the local community hospital. Carol will also move her medical practice to the new location and rent space for an arm’s length price. They think their rent income will available to absorb passive losses generated by other passive activities they own. We can find answer from Reg. § 1.469-2(f)(6) that if property is rented to a nonpassive activity, the rent income generated is treated as though it is not from a passive activity.
In § 1.469-2(f)(6), I find examples Fransen v. U.S., 98-2 USTC ¶50,776, 82 AFTR2d 98-6621 (D.Ct. La., 1998) and aff’d in 99-2 USTC ¶50,882, 84 AFTR2d 99-6360, 191 F.3d. 599 (CA-5, 1999). These examples can help solve Carol and her husband Dick’s problem. In these examples, the court thinks the regulation is valid. The income received from their rental activity is defined as nonpassive. Here is the position, the building that was rented by this business in which the taxpayer was doing their own business inside, this make the income nonpassive.
There are also some examples that people want self rent their location to receive rent income. The first example is Sidell v. Comm. 2000-2 USTC ¶50,751, 86 AFTR2d 2000-6229, 225 F3d 103 (CA-1, 2000). The second example is Krukowski v. Comm. 2002-1 USTC ¶50,219, 89 AFTR2d 2002-827 (CA-7, 2002). Moreover, Sidney C. Shaw 83 TCM 1194, T.C.Memo. 2002-35 is also a good example for self rent.
Carol and her husband Dick want to receive rent income that can counteract by their suspended passive losses. In this case, the rent income is treated as a nonpassive activity. As it is a nonpassive activity rather than a passive, the benefits that Carol and her husband Dick want to receive is not possible.
Chapter 11 Problem 2
In this problem, Bridget is a limited partnership in a fast-food restaurant. After she netting the passive losses against the gain, none of the gain