Question
Q1.- Passive loss rules do NOT apply to a limited partner who meets which of the following material participation tests? A.- Participation for more than
Q1.- Passive loss rules do NOT apply to a limited partner who meets which of the following material participation tests?
A.- Participation for more than 500 hours in the activity during the year.
B.- Material participation in the activity for any five of the ten tax years immediately preceding the current year.
C.- If the activity is a personal service activity, material participation in that activity for any of the three preceding tax years.
D.- All of the above.
Q2.- After separating passive activities into rental real estate and other passive activities, which step must be completed next to determine the allowable losses when a taxpayer has multiple passive activities?
A.- Figure the allowable loss from other passive activities.
B.- Figure the allowable loss from rental real estate activities with active participation.
C.- Figure the income or loss from each separate activity in the usual manner.
D.- Figure the allowable loss from rental real estate activities with significant participation.
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