Section 469

Internal revenue code section 469 c 7 a passive activity losses and credits limited.

Section 469. 99 514 set out as an effective date note above shall not apply to any amount so treated transitional rule for low income housing. 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. 469 allows an owner investor who has more substantial participation in real estate activities to be considered a real estate professional.

Section 469 c 2 also classifies all rental activities as passive activities regardless of whether the taxpayer materially participates in the activity. 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.