To Qualify for the Real Property Business Exception for Rental

question 12

Multiple Choice

To qualify for the real property business exception for rental activities

• A)the taxpayer must materially participate for at least 500 hours.
• B)the taxpayer must materially participate for at least 750 hours.
• C)the taxpayer and spouse must materially participate for at least 1000 hours.
• D)half the taxpayer's time must be spent in the activity and must equal at least 500 hours in the activity.

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Definitions:

UCC

The Uniform Commercial Code is an extensive collection of regulations that oversee business dealings within the United States.

Oral

Oral pertains to spoken words, in contrast to written or non-verbal communication, often used in contracts or agreements that are not recorded in written form.

Cashier's Checks

A check issued by a bank, drawn on its own funds rather than that of a personal account, and signed by a cashier or teller.

Drawer

In contractual terms, the party that writes or drafts a cheque or bill of exchange.