Taxpayer Victory Helps Trusts Holding Business and Real Estate

Taxpayer Victory Helps Trusts Holding Business and Real Estate Avoid Tax

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Overview


In Depth


The taxpayer’s victory in the Aragona decision makes it easier for a trust to materially participate in a business or real estate activity, allowing the trust to avoid paying the net investment income tax on its income. The decision sets the stage for the 2013 filing season. The court contradicts a recent Technical Advice Memorandum providing that a fiduciary cannot consider work done in another capacity.