Realty rental S Corporations: those with excess passive investment income and C earnings and profits face a dilemma.: An article from: The Tax Adviser
Realty rental S Corporations: those with excess passive investment income and C earnings and profits face a dilemma.: An article from: The Tax Adviser
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This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on June 1, 1992. The length of the article is 3187 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.
From the supplier: Subchapter S corporations who have passive income from rents may be able to reclassify that income if they are providing what proposed IRS regulations call ‘other significant services’, such as hotel maid service. Otherwise, if the S corporation’s passive income is over 25%, and it has subchapter C earnings and profits, it may have its S status revoked for up to 5 years as well as facing an excess net passive income tax. Utilities, trash pick-up and common area maintenance are considered customary services, and would not qualify. Other methods of reducing passive income liabilities are examined.
Citation Details
Title: Realty rental S Corporations: those with excess passive investment income and C earnings and profits face a dilemma.
Author: Michael S. Lux
Publication: The Tax Adviser (Magazine/Journal)
Date: June 1, 1992
Publisher: American Institute of CPA’s
Volume: 23 Issue: n6 Page: 391(5)
Distributed by Thomson Gale
Realty rental S Corporations: those with excess passive investment income and C earnings and profits face a dilemma.: An article from: The Tax Adviser
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