If a taxpayer materially participates in his/her rental activity as a real estate professional,the activity is considered a trade or business and not a passive activity.

Question

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If a taxpayer meets the requirements to be considered a real estate professional and materially participates in their rental activity, it is considered a trade or business and not a passive activity subject to passive activity loss limitations.

If a Taxpayer Materially Participates in His/her Rental Activity as a Real