For purposes of applying the passive loss limitations for rental real estate,active participation requires a greater time commitment by the taxpayer than does material participation.

Question

Quizplus · Accepted Answer

Active participation requires a lesser time commitment by the taxpayer than material participation. Material participation requires the taxpayer to participate in the rental activity on a regular, continuous, and substantial basis. Active participation only requires the taxpayer to make management decisions such as approving tenants, setting rent, and approving repairs.

For Purposes of Applying the Passive Loss Limitations for Rental