A Taxpayer's Rental Activities Will Be Considered a Trade or Business

question 222

Multiple Choice

A taxpayer's rental activities will be considered a trade or business, rather than a passive activity, if

• A) more than half of the taxpayer's personal services performed in all business activities during the year are spent managing the rental properties.
• B) the taxpayer performs more than 500 hours of work during the year managing the rental properties.
• C) the taxpayer performs more than 750 hours of work during the year managing the rental properties.
• D) conditions A and C, but not B, are satisfied.

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision or the degree to which a job provides the employee with the discretion and independence to schedule their work and determine how it is done.

Differentiation

The process of making or perceiving a difference between items or entities, often used in business strategy to distinguish products or services.

Introducing Innovations

The process of implementing new ideas, products, or methods within an organization or society to improve efficiency, effectiveness, or outcomes.

New Line Of Business

The act of introducing a new set of products, services, or market focus in a company's business offerings.