a taxpayer is involved in several different business operations during the year, how is the determination made as to how many activities these operations constitute for purposes of the passive activity rules? Can a business operation and a rental operation ever be combined into one activity? Explain faxpayered in several different business operations during the year, how is the determination made as to how many acties these operations constitute for purposes of the passive activity loss rul A Under the regions, offerent business operations may constitute one or more actives, depending upon all the pertinent facts and circumstances. The facts that are given more weight in this determination include: simlanes and differences in types of business extent of common control, extent of common ownership, geographical location, and interdependencies between the operations. Once this determination is made, laxpayers must be consistent from year OB Under the regulations, different business operations may dorite one or more activities, depending upon all of the facts and cumstances. The facts that are given more weight in this determination include only similarties in types of business, event of ammon ownership, geographical location, and interdependencies between the operations. Orice this determination is made, taxpayers can change the grouping of these activities from year to year without a reason OC Under the regulations, Saxpayers may not treat one or more actives as a single activity OB. Under the regulations, aferent business operations may constitute one or more activities, depending upon at the pertinent facts and coumalances. The facts that are given the least weight in this determination include: similares and differences in type Bom year to year bushes, exent of common contri, exdent of common ownership, geographical location, and interdependencies between the operations. Once this delamination is made taxpayers do not have to be b. Can a business operation and a rental operation ever be smbined into one activity? Explan A. Abness operation and rental operation cannot be combined the same activity for purposes of the pessive activity losses. However, if the business operation and the rental operation are stated at the same location and the business operation is insubstantial in congeton to the rental operation, or vice versa, the two may be combined into one activity The Regulations do not define OB Abusiness operation and a rental operation can be combined into the same adivity for purposes of the passive activity loss nues OC Abness operation and a rental operation cannot be combined in location, the business operation define what coas the passive activity loss nes Some exceptions are the business operation and the rental operation are situated at th OD Absperation and a rental operation cannot be combined into the same activity for pupenas of the passive activity loss nues, exceptions