Patty is a landlord who has multiple rental properties. Which of the statements below regarding the classification of her activity is true? (Topic 8)

Question options:

	rental real estate cannot be a trade or business
	rental real estate is a trade or business
	rental real estate cannot be a trade or business unless the taxpayer satisfies one of the material participation tests under the passive activity loss rules
	rental real estate is not a trade or business unless the individual taxpayer satisfies the real estate professional exception to the passive activity loss rules