In her January 2009 Tax Policy News, the Texas Comptroller announced that she will delay implementing a policy that would have prevented rental income that flowed from one taxable entity (the landlord) to an investor in the landlord entity to be treated as passive revenue by the investor.  The policy would have made it more difficult for investors in real estate properties to qualify for the passive entity exemption.  The Comptroller decided to delay implementing the policy until after the legislature had an opportunity to address the policy with legislation during the 2009 session.  You can read the January 2009 Tax Policy News on the Comptroller’s website: http://www.cpa.state.tx.us/taxinfo/taxpnw/tpn2009/tpn901.html#issue1.