Discussion:PAL rules & SMLLC /Working Interest
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Discussion Forum Index --> Tax Questions --> PAL rules & SMLLC /Working Interest
| 6 September 2007 | |
| Would Pal rules apply to a SMLLC that holds a working interest in an Oil or Gas well? I thought Working Interests were not considered passive activities. | |
| 6 September 2007 | |
| PAL is based on participation level. SMLLC member can be active & subject to SE tax. | |
Death&Taxes (talk|edits) said: | 6 September 2007 |
| Sec. 469(c)(3) spells out non-passive status. | |
| 6 September 2007 | |
| Since the working interest is held by a SMLLC, the liability is limited. As such, the activity is subject to the PAL rules. | |
Death&Taxes (talk|edits) said: | 6 September 2007 |
| Thanks for reading a bit farther, TT | |
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