Milbank Tax Attorney Comments on IRS Revenue Procedure Allowing Late Aggregation Elections Under Passive Activity Limitations

WASHINGTON, DC, June 2, 2011 – Michael J. Grace, J.D., Managing Director-TAARS^®, commented in a major tax publication on recently issued IRS Revenue Procedure 2011-34. The Revenue Procedure allows some “real estate professionals” to make late elections to treat all interests in rental real estate as one rental real estate activity under the passive activity loss and credit limitations, Internal Revenue Code Section 469. Michael observed that the Revenue Procedure technically does not provide a “safe harbor.” He also cautioned that taxpayers before making such elections should analyze the relative advantages and disadvantages. Full Story