US Court of Appeals Affirms Gragg v. United States

A recent appeal case by The Ninth Circuit, affirming a district court, held that section 469(c)(7) merely removes the per se bar for treating all rental losses as passive for a real estate professional, but it doesn’t excuse real estate professionals from showing material participation in the real estate activity to deduct rental losses.

View the court documents here: (Charles Gragg et ux. v. United States) (No. 14-16053) (United States Court of Appeals for the Ninth Circuit)

Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s