Abstract
Congress enacted the passive loss rules under section 469 of the Internal Revenue Code in an attempt to curb tax shelters. Many still question the appropriateness of the passive loss rules. In this Article, Professor Hymel reexamines the policy considerations behind passage of section 469, as well as measuring the passive loss rules against normative tax policy criteria. The analysis reveals that section 469 suffers from numerous defects under traditional tax policy criteria. Furthermore, anti-tax shelter legislation leading up to the enactment of section 469 was sufficient to curb the use of abusive tax shelters. Therefore, section 469 should be repealed and replaced with tax laws curbing unintended use of tax preferences.
How to Cite
40 Ariz. L. Rev. 615 (1998)
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