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It is important to determine material participation so the taxpayer is allowed to __________. 1) Ignore the safe harbor rules (hobby loss rules) for passive
It is important to determine material participation so the taxpayer is allowed to __________.
1) Ignore the safe harbor rules (hobby loss rules) for passive business losses.
2) Reduce self-employment tax by the net operating loss from a nonpassive business.
3) Deduct nonpassive business losses from other income.
4) Deduct passive business losses from other income.
Deduct passive business losses from other income.
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