To qualify for the real property business exception for rental activities
A)the taxpayer must materially participate for at least 500 hours.
B)the taxpayer must materially participate for at least 750 hours.
C)the taxpayer and spouse must materially participate for at least 1000 hours.
D)half the taxpayer's time must be spent in the activity and must equal at least 500 hours in the activity.

Question

Quizplus · Accepted Answer

To qualify for the real property business exception for rental activities, the taxpayer must materially participate for at least 750 hours. This is a specific requirement set by the IRS to ensure that the taxpayer is significantly involved in the real estate business to qualify for certain tax benefits.

To Qualify for the Real Property Business Exception for Rental