Navigating the Murky Waters of Investment Tax Credits and Passive Activity Rules: A Deep Dive into Strieby v. Commissioner
The Tax Court recently issued its Memorandum Opinion in Kelly M. Strieby and Jan E. Sharon-Strieby v. Commissioner of Internal Revenue, T.C. Memo. 2025-28, providing valuable insights into the complexities surrounding the claiming of investment tax credits under Section 48 of the Internal Revenue Code (the Code) and the limitations imposed by the passive activity credit rules of Section 469. This case, decided fully stipulated under Tax Court Rule 122, serves as a crucial reminder for tax practitioners of the necessity of thorough due diligence when advising clients on tax-advantaged investments, particularly those promising seemingly effortless tax benefits.
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