A Passive Activity Is a Business or Trade in Which

question 40

True/False

A passive activity is a business or trade in which you do not materially participate,such as rental activity.

---

Definitions:

Education Fund

A savings or investment account set aside for educational expenses, often with tax advantages, to support an individual's future education costs.

Total Value

The combined market value or monetary worth of all assets, goods, services, or obligations.

Compounded Annually

The method of computing interest that includes both the original amount of money invested and the interest that has been added over previous years, done annually.

Return

The income generated from an investment, often expressed as a percentage of the invested capital.