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Level 2
February 29, 2020

Net investment tax on sale of commercial rental

  • February 29, 2020
  • 1 reply
  • 7 views

Client sold commercial rental formerly used by client in her business. Sold business 5 years ago and collecting rents from business purchaser. Client is active but less than 250 hours activity (even if annualized to date of sale. It appears client will be subject to net investment tax on 1231 sale--any relief from prior ownership as material business owner? Thank you in advance for any guidance here.

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    1 reply

    qbteachmt
    Level 15
    March 10, 2020

    "any relief from prior ownership as material business owner?"

    There is no Prior Ownership for the real estate, based on the few details you have listed.

    Please provide more details. Thanks.

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