Clarification

07/13/2009

An item in Thursday's CPA Letter Daily based on an article in The Wall Street Journal indicated that the Tax Court had given small-business owners a new tax deduction. The court actually held that LLC members and LLP partners are no longer subject to the presumption that they are not active participants in their LLC/LLP's business. They still have to prove material participation in order to avoid the passive loss limitations under § 469.

Published in Brief: