if a taxpayer's interest in a passive activity is transferred by gift, they are included in the property's foundation for the done.
Any person or business that owes taxes to the federal, state, or local governments is referred to as a taxpayer.
Taxes on both individuals and businesses are the main source of funding for governments.
Taxpayers can be broadly divided into two groups: individuals and corporations.
Individuals - Taxpayers who must pay taxes on their income fall under this category.
Corporations: These taxpayers are required to pay tax on the profits they made from their business operations the previous year.
A corporation that is unqualified to choose or has chosen not to apply the system made available by this Directive is referred to as a non-taxpayer.
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