Once an Activity Has Been Classified as Passive,it Is Considered

question 109

True/False

Once an activity has been classified as passive,it is considered passive with regard to that taxpayer until it is sold.

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Definitions:

Majority Shareholders

Individuals or entities that own more than half of the total shares of a corporation, giving them significant control over company decisions.

Proxies

Authorizations given by shareholders for others to vote on their behalf at company meetings.

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.

Withdrawn

The act of pulling back or removing a statement, offer, or proposal previously put forward.