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

Question

Quizplus · Accepted Answer

Active participation is used to determine if a taxpayer is eligible for the $25,000 rental real estate loss allowance, not for material participation or passive activity classification.

The Term "Active Participation" Is Used to Determine