If an individual is not a material participant, a rental activity is considered passive. However, certain rental activities are not deemed to be rentals for passive loss purposes even if the individual is not a material participant. Which of the following is not excluded from the passive loss rules?
A)Golf cart rentals.
B)Hotel rooms.
C)Jet ski rentals.
D)Apartment rentals.
E)Construction equipment rentals.

Question

Quizplus · Accepted Answer

Apartment rentals are not excluded from the passive loss rules, meaning they would be subject to the passive loss limitations if the individual is not a material participant. Golf cart rentals, hotel rooms, jet ski rentals, and construction equipment rentals are all specifically excluded from the passive loss rules under certain conditions.

If an Individual Is Not a Material Participant, a Rental