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The article discusses a court case related to taxes of real estate leases, wherein the tax court described need for tax planning in drafting and negotiating real estate lease agreements. It states that Michael Stough, the sole shareholder of Stough Development Corp., transferred the property to Wintermans LLC, and Wintermans asked the firm, to file an amended Form 1099. The court ruled that payment related to development and construction costs should be treated as additional rental income.

The article discusses a recent change in tax regulation covering Sections 1.469-4 and 1.469-9 of the U.S. Internal Revenue Code (IRC). Included in this report are sections pertaining to the relationships of the grouping of activities, and of the grouping of rental and real estate activities. It discusses various characteristics that differentiate the two IRC regulations in the area of IRS notification of rental and real estate groupings, the general types of activities that can be used, and IRS notification of change in facts and circumstances.

The article reports that U.S. Internal Revenue Service (IRS) has issued revenue ruling 2016-15 to clarify the correct and uniform application of tax laws for treatment of qualified real property business indebtedness (QRPBI) on real property used in a trade or business. It mentions that gross income includes any amount that would be includible by reason of discharge of a taxpayer's indebtedness. It also mentions that taxpayer excludes cancellation of debt (COD) income from QRPBI.

Addresses the taxation of rental income from real estate in the United States in generating extra revenue. Details on the issued ruling of the United States Internal Revenue Service; Use of the guidelines.