Aragona Trust v. Comm'r
United States Tax Court
T is a trust that owned rental real-estate properties and engaged in other real-estate activities. T's rental real-estate activities would be considered per se passive activities under I.R.C. sec. 469(c)(2) unless T qualified for the exception found in I.R.C. sec. 469(c)(7). This exception is applicable if more than one-half of the personal services performed in trades or businesses by the taxpayer are performed in real-property trades or businesses in which the taxpayer…
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T is a trust that owned rental real-estate properties and engaged in other real-estate activities. T's rental real-estate activities would be considered per se passive activities under I.R.C. sec. 469(c)(2) unless T qualified for the exception found in I.R.C. sec. 469(c)(7). This exception is applicable if more than one-half of the personal services performed in trades or businesses by the taxpayer are performed in real-property trades or businesses in which the taxpayer materially participates and if the taxpayer performs more than 750 hours of services during the year in real-property…
1Opinion of the Court
Morrison, Judge:
The respondent (referred to here as the “IRS”) issued a notice of deficiency to the Frank Aragona Trust (sometimes referred to here as the “trust”), determining the following deficiencies in federal income tax and the following penalties:
Year Deficiency Accuracy-related penalty sec. 6662(a)
2003 $86,289 $17,257.80
2004 421,292 84,258.40
2005 -0--0-
2006 84,540 16,908.00
The trust filed a petition as permitted by section 6213(a).1 We have jurisdiction to redetermine the deficiencies and penalties under section 6214(a). After concessions,2 the two issues remaining for decision…
2Cases cited5 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Estate of Bongard v. Comm'rUnited States Tax Court · 2005
- In Re Butterfield EstateMichigan Supreme Court · 1983
- Bronstein v. CommissionerUnited States Tax Court · 2012
- Mattie K. Carter Trust Ex Rel. Fortson v. United StatesDistrict Court, N.D. Texas · 2003
3Cited by6 opinions
- Aragona Trust v. Comm'rUnited States Tax Court · 2014
- Coastal Heart Med. Group, Inc. v. Comm'rUnited States Tax Court · 2015
- Frank Aragona Trust, Paul Aragona, Executive Trustee v. CommissionerUnited States Tax Court · 2014
- Makhlouf v. Comm'rUnited States Tax Court · 2017
- Rost v. United StatesCourt of Appeals for the Fifth Circuit · 2022
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