Asked by Jenna Grace Milionis on Jun 17, 2024

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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.
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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.