Bob, Carol, Ted, and Alice organize a group with the purpose of joint purchase and/or sale of investment properties. All members own the properties as co-owners and individually have the right to dispose of their group interests. Which of the following is a true statement regarding their treatment as a partnership?

a) They are an investing partnership and may elect out of partnership treatment.

b) This organization may not choose to be excluded from partnership treatment for federal

income tax purposes.

c) It is never advantageous to elect out of partnership treatment for federal tax purposes.

d) An investing partnership must be actively conducting a trade or business.