Question 7 Which of the following is not a passive activity?

1) Owning a working interest in oil and gas wells.

2) Owning a business and not materially participating.

3) Owning a limited partnership interest in oil and gas wells.

4) Owning a limited partnership interest in real estate.

Question 8 Billy Ray owns several parcels of rental real estate, and he actively participates in managing the properties. His total loss from these activities in 2019 is $30,000 and his AGI for 2019 is $110,000. How much of the disallowed loss from rental real estate activities may be carried over to future years?

1) 0%

2) 10%

3) 50%

4) 100%