US Tax Court Ruling Could Save Real Estate Trusts Millions

US Tax Court Ruling Could Save Real Estate Trusts Millions
According to an article on real-estate resource Inman News, the U.S. Tax Court recently overturned the IRS by ruling that a trust can qualify as a real estate professional, a decision that confers attractive tax benefits on trusts with significant real estate holdings. Now, qualifying trusts are no longer subject to the dreaded passive loss rules, meaning they can deduct an unlimited amount of rental losses each year. Such trusts may also eschew the 3.8 percent net investment income tax on real estate income. Inman contributor Stephen Fishman, a tax attorney, expert and author, delves into the specific qualifications for trusts to be considered real estate professionals in his April 7 article bearing the headline above on www.Inman.com. http://www.inman.com/2014/04/07/us-tax-court-ruling-could-save-real-estate-trusts-millions/