Willy is involved in a number of businesses as a consultant. Below are the businesses and the hours of activity that Willy spent in each. Identify any activities that are passive and explain why the income or loss from the other activities are not passive income or loss.
$$\begin{array} { c r }
\text { Activity } & \text { Hours } \
\hline \text { A } & 200 \
\text { B } & 610 \
\text { C } & 70 \
\text { D } & 120 \
\text { E } & 300 \
\text { F } & 65 ^ { * }
\end{array}$$

Question

Willy is involved in a number of businesses as a consultant. Below are the businesses and the hours of activity that Willy spent in each. Identify any activities that are passive and explain why the income or loss from the other activities are not passive income or loss.
 $$\begin{array} { c r } 
\text { Activity } & \text { Hours } \
\hline \text { A } & 200 \
\text { B } & 610 \
\text { C } & 70 \
\text { D } & 120 \
\text { E } & 300 \
\text { F } & 65 ^ { * }
\end{array}$$

Quizplus · Accepted Answer

The Answer is C: The only passive activity
B: Willy participates for more than 500 hours
A, D, E: Participation in each exceeds 100 hours and the total exceeds 500 hours.
F: Willy's activity constitutes all the activities.

Willy Is Involved in a Number of Businesses as a Consultant