Rachel participates 150 hours in Activity A and 400 hours in Activity B, both of which are nonrental businesses.Both activities are passive.

Name: Rachel participates 150 hours in Activity A and 400 hours in Activity B, both of which are nonrental businesses.Both activities are passive.
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

The fact that the activities are passive indicates that Rachel is not materially participating in them. Therefore, the income generated from these activities would be considered passive income for tax purposes.

Rachel Participates 150 Hours in Activity a and 400 Hours