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Participation rules determine if Lucy and Charlie Brown may use any of their rental property loss to offset nonpassive income on their tax return. All
Participation rules determine if Lucy and Charlie Brown may use any of their rental property loss to offset nonpassive income on their tax return. All of the following statements are considered active participation except:
a) Lucy and Charlie reworked their current lease agreement to include a clause about pets.
b) Lucy and Charlie own 5% combined interest in the rental property.
c) Charlie approved an increase in the lease payments while Lucy was away.
d) Charlie owns 4% and Lucy owns 7% interest in the rental property.
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