Which of the following is not true of passive activities? Material participation and active participation mean the same thing. Material participation includes working more than 500 hours during the year in the activity. A real estate professional must spend more than 750 hours during the year in real estate activities. The $25,000 rental real estate exception may be limited by the taxpayer's adjusted gross income.
Which of the following is not true of passive activities? Material participation and active participation mean the same thing. Material participation includes working more than 500 hours during the year in the activity. A real estate professional must spend more than 750 hours during the year in real estate activities. The $25,000 rental real estate exception may be limited by the taxpayer's adjusted gross income.
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:Which of the following is not true of passive activities?
Material participation and active participation mean the same thing.
Material participation includes working more than 500 hours during the year in the activity.
A real estate professional must spend more than 750 hours during the year in real estate activities.
The $25,000 rental real estate exception may be limited by the taxpayer's adjusted gross income.
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