a. Based on the following, indicate either "Yes" or "No" as to satisfying criteria of a real estate professional.

	More than half of the personal services the taxpayer performs in trades or businesses are performed in real property trades or businesses in which the taxpayer materially participates. ( choices yes/no)
	The taxpayer performs more than 750 hours of services in real property trades or businesses in which the taxpayer materially participates. ( choices yes/no)
	The taxpayer performs 500 hours of services and his spouse performs 300 hours of services in these real property trades and businesses as a material participant. ( choices yes/no)
	Services performed by an employee with a 7.5% interest in the employer (the business). ( choices yes/no)

b. Complete the following statement outlining why qualifying for this status could be beneficial under the passive activity loss rules.

Taxpayers who qualify as a real estate professional are allowed to apply the material participation tests to their rental real estate activities. That is, these rental activities are not automatically treated as. (choices passive activites/nonpassive)

8.6.1