Maximizing investor losses

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Maximizing Investor Losses

After reviewing the scenario, compare and contrast the at-risk rules and passive activity limits. Discuss the purpose for each, and suggest at least two (2) tax-planning strategies for ensuring that the IRS allows passive losses in order to reduce your tax liability. Provide support for your suggestion.

Imagine that you in the process of creating a new business structure and have to choose between a personal service corporation and one that is closely held. Consider the tax deductions, at-risk rules, and passive loss limitations, and recommend the type of structure that has the greatest potential to minimize your tax liability. Defend your positon.

Reference no: EM13819492

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