Final passive loss regs issued.

• Author: Josephs, Stuart R.
• Position: IRS News - Brief Article

The IRS has issued final regulations (T.D. 9013) on treating self-charged interest income and expense as passive income and loss under IRC 469. This applies if the interest is attributable to loans between a taxpayer and a partnership or S corporation (passthrough entities) in which the taxpayer owns a direct or indirect interest; or identically owned passthrough entities.

The regulations also apply to guaranteed payments to a partner for the use of capital and to loans that have unstated or foregone interest or...