Given That Losses from Passive Activities Can Only Offset Income

question 26

Essay

Given that losses from passive activities can only offset income from passive activities unless the passive activity is sold, what types of activities are not considered to be passive? Name at least three ways a taxpayer may be treated as an active participant in an activity.

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Definitions:

Survey

A method of research involving the collection of data from a predefined group of respondents to gain information and insights on various topics of interest.

Going Native

A term used in anthropology to describe a researcher becoming overly involved and assimilated into the culture being studied, potentially biasing the findings.

Participant Observation

A research method in anthropology and sociology where the researcher immerses themselves in the community being studied to gather data.

Objectivity

The principle or practice of maintaining neutrality and impartiality, avoiding bias or subjective judgment in research, analysis, or reporting.