eBook Print Item Tax Drill Rental Activities and the Passive Loss Rules Indicate whether the following statements are "True" or "False" regarding rental activities and th a. Subject to certain exceptions, all rental activities are to be treated as passive activities. b. An activity that is classified as a rental activity is not subject to the passive activity igss True rules if the taxpayer involved is a material participant. False c. Temporary Regulations provide exceptions for certain situations where activities involving rentals of real and personal property are not to be treated as rental activities. However, it does not necessarily mean that the activity is classified as a nonpassive activity