Asked by Jenna Grace Milionis on Jun 17, 2024
Verified
Rental activities by definition are passive activities.
Passive Activities
Economic activities or investments in which the investor does not materially participate, often subject to different tax rules.
- Identify the classification of income received from partnerships and passive activity rules.
Verified Answer
JB
Jirah BernalJun 20, 2024
Final Answer :
True
Explanation :
Rental activities are generally considered passive activities for tax purposes, meaning the taxpayer does not materially participate in the activity on a regular, continuous, and substantial basis. However, there may be exceptions to this general rule depending on the specific circumstances and the taxpayer's level of involvement.
Learning Objectives
- Identify the classification of income received from partnerships and passive activity rules.