The term "active participation" is used to determine:
A)Whether an activity is considered passive.
B)Whether a taxpayer is a material participant.
C)Whether a taxpayer is eligible for the $25,000 rental offset.
D)None of these.

Question

Quizplus · Accepted Answer

Active participation is a criterion used to determine if a taxpayer is eligible for the $25,000 rental real estate loss allowance, which allows for the offset of losses against non-passive income.

The Term "Active Participation" Is Used to Determine