1. Which of the following statements regarding passive losses is false? A) Passive losses that exceed passive income are de ferred until the taxpayer generates passive income to offiset these passive losses or until the taxpayer disposes of that activity B) Losses from rental activties are generally considered to be passive losses. C) A loss from a passive ac ivity is fully deductible as kong as the taxpayer has sufficient ta:x basis in the activity D) A passive activity is any activity that involves a trade or business or rental activity in which the taxpayer does not materially participate