Which of the following independent activities are considered passive for the year? Explain

your answer in detail.

a$)$ Laura owns a rental unit that she rents out to students. The rental unit is Laura$$s only

business and she spends approximately $875$ hours per year managing, collecting the rent,

advertising, and performing minor repairs. At times she must hire professionals such as

plumbers to do the maintenance. Is the rental unit a passive activity with respect to

Laura?

b$)$ Kami is a medical doctor who works four days a week in a medical practice that she and

five other doctors formed. Last year she and her partners formed another partnership that

owns and operates a medical lab. The lab employs ten technicians and a manager.

During the year Kami spent $120$ hours in meetings, reviewing records, etc., for the lab. Is

the lab a passive activity with respect to Kami? Please explain your answer.