Adeyemo v. IRS, T.C. Memo. 2014-1 (Jan. 2, 2014).
The first cases of 2015 are due out today from the Tax Court. The first case of last year, Adeyemo v. IRS, was a good reminder that "Rental activity (including rental real-estate activity) is per se passive unless the taxpayer qualifies as a real-estate professional as defined in section 469(c)(7)(B)." Id. at p. 13. For those of you who moonlight as landlords (less than 750 hours a year), be careful when claiming more deductions than earnings for your realty business activities--your passive activity losses can only be deducted to the extent of your passive activity gains. Generally, IRC Sec. 469.
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