Section 171 0003 Of The Texas Tax Code

1 the entity is a general or limited partnership or a trust other than a business trust.

Section 171 0003 of the texas tax code. Definition of passive entity. Read this complete texas tax code 171 0003. Note that some passive entities have an annual reporting requirement to affirm their passive status.

Texas tax codesec 171 0003definition of passive entity. Texas tax code ttc 171 0003 b. Texas tax code 171 0003 definition of passive entity.

A 1 in making the computation under subsection a 3 income described by subsection a 2 may not be treated as income from conducting an active trade or business. For a texas entity the end date is the effective date of the termination merger or conversion into a non taxable entity. Texas code is enacted as a part of the state s continuing statutory revision program begun by the texas legislative council in 1963 as directed by the legislature in chapter 448 acts of the 58th legislature regular session 1963 vernon s texas civil statutes.

For more detailed codes research information including annotations and citations please visit westlaw. A an entity is a passive entity only if. For a non texas entity the end date is the date the entity ceased doing business in texas.

Findlaw codes may not reflect the most recent version of the law in your jurisdiction. Qualification questions is this entity a passive entity as defined in section 171 0003 of the texas tax code. Definition of passive entity on westlaw.

Passive entities as defined under texas tax code 171 0003. Texas tax code 171 0003 definition of passive entity. 3 the entity does not receive more than 10 percent of its federal gross income from conducting an active trade or business.