Download This PaperThe Real Estate Trade or Business Exception from IRC Section 163(J)
The CPA Journal, August 2019
3 Pages Posted: 11 May 2020
Date Written: August 1, 2019
Abstract
The scope of the exception for taxpayers engaged in a real estate trade or business from the harsh consequences of Internal Revenue Code (IRC) section 163(j) remains uncertain, even in the aftermath of the issuance of proposed regulations under that section. In particular, the scope and definition of what constitutes “real estate trade or business” remains unclear, and the reference to the same definition under IRC section 469 [which is unrelated to section 163(j)] is equally unhelpful. This article lists several activities that have been previously treated by courts and the IRS as “real estate trade or business” under section 469, and thus should equally apply to section 163(j).
Keywords: Real Estate Trade or Business Exception, IRC Section 163(J)
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