Ezel / IRS Rulings / 201112010

CCA 201112010: Passive activity rules limit partners' losses

Number
201112010
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Passive Activity Losses and Credits Limited
Topics
Accounting methods and periods
Code sections
§ 469
Publicly released
March 25, 2011
Source
View Official PDF

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This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2011, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2011
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that section 469 would continue to limit the amount of losses allocated to the partners in the activity. The advice treated the activity as passive and stated that no exception to the passive activity limitation applied to the partners involved.

Ruling snapshot

  • Question: Does section 469 limit the partners' losses from the activity?
  • Outcome: Advice given.
  • Key authorities: IRC § 469

Full text (IRS public release)

ID: CCA-105527-10 Number: 201112010
Release Date: 3/25/2011
Office: ----------
UILC: 469.00-00

From: -----------------
Sent: Wednesday, January 06, 2010 5:27 PM
To: ---------------------
Cc: -------------------
Subject: RE: Partnership vs. non-partnership question #2 ---------

Hi ---------

I would agree that section 469 would still apply to limit the amount of losses due to the activity being
passive for all the partners involved, and not falling within any exception to the passive activity limitation.

--------can you please confirm?

----

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