A prior Section 1231 loss can change the tax treatment of a property gain years later. Learn how the five year lookback rule works, how intervening gains reduce prior loss balances, how K1 amounts and passive losses affect the calculation, and when current Section 1231 gain becomes ordinary income.

Rental income does not automatically threaten an S corporation election. The risk generally arises when the corporation has accumulated earnings and profits and more than 25 percent of gross receipts are passive investment income. Learn how the active rental exception, Section 1375 tax, three year termination rule, and E&P planning options work.

A recent federal court decision denied more than $100 million of claimed tax benefits because the underlying transaction lacked economic substance. Learn what business owners should know before implementing sophisticated tax planning strategies.