Tom participates for 300 hours in Activity A and 250 hours in Activity B, both of which are nonrental businesses. Both activities are active.

Question

Quizplus · Accepted Answer

Tom's participation in both Activity A and Activity B exceeds the 500-hour material participation requirement, which is one of the criteria for classifying a nonrental activity as an active business. Therefore, both activities can be considered active businesses.

Tom Participates for 300 Hours in Activity a and 250