Franchise Tax FAQ number 12 under “Passive Entities” on the Comptroller’s website would have required that taxpayers treat rental income distributed from one taxpayer to a second taxpayer as rental income of the second taxpayer for purposes of determining whether the second taxpayer qualified as a passive entity.  The Comptroller has removed FAQ number 12 at this time (effective through the end of 2009).  The Comptroller has indicated, however, that this policy position will be enforced for 2010 and later years if the legislature does not indicate a different intent by amending the statute during the 2009 legislative session.