IRS Issues PLR Granting Extension to Make RPTOB Election for Business Interest Limitation

The IRS has issued a private letter ruling on I.R.C. §163 and Treas. Reg. §301.9100 granting taxpayer a 60-day extension to make a real property trade or business (RPTOB) election under I.R.C. §163(j)(7)(B) to avoid business interest deduction limitations. The taxpayer, a limited liability company classified as a partnership engaged in real property activities, failed to make the election on its timely filed Form 1065 for the tax year. The taxpayer’s certified public accounting firm acknowledged having all necessary information to determine the election’s availability but failed to inform the taxpayer of the RPTOB election option. The IRS determined the ...