![Federal Tax News Post for June 27th](https://www.tkocpa.com/wp-content/uploads/freshizer/4e377e01a3dd681d4e5f24f4d2f0f703_06_27_17_87461150_FNTP_560x292_2-1146-395-c.jpg)
Federal Tax News Post for June 27th
Rentals not treated as passive investment income for S corporation purposes. In some cases, having too much passive income, which may include rent, can cause an S corp to lose its S status. But rents included in the definition of passive investment income for S corp purposes exclude those derived in the active trade or business of renting property. The IRS has privately ruled that a corporation’s rental income from owning and operating a medical office complex won’t be treated as passive investment income for S corp purposes. (PLR 201725022)