"Active participation" and "real estate professional" are both exceptions to the general rule for passive activity losses with rental real estate.

I.	One of the tests that an individual must meet to qualify as a real estate professional is that the taxpayer spends more than 50% of his/her time in real property trades or businesses.
II.	A taxpayer with an AGI of $190,000 qualifying under the real estate professional exception may deduct an unlimited amount of rental real estate losses.

	a.	Only statement I is correct.
	b.	Only statement II is correct.
	c.	Both statements are correct.
	d.	Neither statement is correct.

According to the test bank 2016, the answer is (C). I understand that the first one is correct, but don't understand why the second one is correct. Please help!!! Thank you!