Tax Court Disallows Losses on Real Estate Leasing Activities

In Jose B. Magno v. Commissioner, the Tax Court disallowed losses relating to real estate leasing activities that a financial planning service provider had claimed for his work maintaining residential properties that the taxpayer had alternately leased and tried to sell.  The Court disallowed the losses under 469 passive loss rules and imposed a section 6662 accuracy related penalty.

Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.