Aragona Trust Decision

The U.S. Tax Court recently released its decision in the Aragona Trust case.

The court held that: 

1. A trust can qualify for the IRC § 469(c)(7) exception;
2. A trust is capable of performing personal services within the meaning of IRC § 469(c)(7);
3. Services performed by individual trustees on behalf of the trust may be considered personal services performed by the trust; and
4. The Aragona Trust materially participated in real-property trades or businesses. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.