Recent Taxpayer Court Victories Support Members of LLC’s Bid to Avoid Passive Loss Limitations – But Self-Employment Tax Could Be the Unintended Consequence

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Via the Journal of Accountancy

The Journal of Accountancy has prepared a great article detailing out the pros and cons of recent tax court cases that have held that a member of a LLC should be treated as a general partner rather than presumptively as a limited partner for purposes of testing for material participation under the passive activity rules. 

For those involved in real estate investment activities, this article is a great source of some of the details, and the latest rules that may effect your taxation.

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