Irc Section 469

469 c passive activity defined.

Irc section 469. Such gain would have been treated as gain from a passive activity had section 469 of the internal revenue code of 1986 as added by this section been in effect for the taxable year in which the sale or exchange occurred and for all succeeding taxable years. Internal revenue code section 469 c 7 a passive activity losses and credits limited. 469 b disallowed loss or credit carried to next year except as otherwise provided in this section any loss or credit from an activity which is disallowed under subsection a shall be treated as a deduction or credit allocable to such activity in the next taxable year.

Under section 469 and the regulations thereunder the taxpayer is allowed 10 000 of the 12 000 passive activity deduction and has a 2 000 passive activity loss for the taxable year. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Click here to return to the home page internal revenue code section 469 c 7 a ii passive activity losses and credits limited c passive activity defined.

If for any taxable year the taxpayer is described in paragraph 2 neither a the passive activity loss nor b the passive activity credit for the taxable year shall be allowed. Since the 10 000 passive activity deduction allowed under section 469 is a capital loss such deduction is allowable for the taxable year only to the extent provided under section 1211.