Trusts, Section 469 & Section 1411: Material Participation After Frank Aragona Trust

Available Through AICPA Website

On March 27, 2014, the United States Tax Court, in Frank Aragona Trust v. Commissioner, issued quite possibly the most significant court decision for trusts in 2014. Not only did this case discuss the applicability of the Section 469 real estate professional exception to the passive activity loss rules, it also discusses what standard to apply to determine whether a trust materially participates under Section 469. This has a direct and significant impact on whether the net investment income tax (NIIT) applies to your client’s estate(s) and trust(s) and their beneficiaries. In this seminar we will show you how the landscape for the material participation standard of trusts looks after Frank Aragona Trust, including the following:

  • A discussion of the applicable parts of Section 469 and the regulations thereunder;
  • A discussion of the applicable parts of Section 1411 (NIIT) and the regulations thereunder;
  • A discussion of Congressional Committee Reports and the legislative history of the material participation standard for trusts;
  • A chronological discussion of the applicable case law (including Mattie K. Carter and Frank Aragona Trust) and available IRS guidance (including TAM 200733023, LTR 201029014 & LTR 201317010); and
  • Overall observations and possible planning opportunities.
Click here to purchase :

Connect With Us