If an Individual Is Not a Material Participant, a Rental

question 28

Multiple Choice

If an individual is not a material participant, a rental activity is considered passive. However, certain rental activities are not deemed to be rentals for passive loss purposes even if the individual is not a material participant. Which of the following is not excluded from the passive loss rules?

• A)Golf cart rentals.
• B)Hotel rooms.
• C)Jet ski rentals.
• D)Apartment rentals.
• E)Construction equipment rentals.

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Definitions:

Heuristic Shortcuts

Simple, efficient rules which people often use to form judgments and make decisions, sometimes leading to cognitive biases.

Stereotyping Heuristic

A mental shortcut that allows individuals to make quick judgments about people or situations based on generalizations or stereotypes.

Representation Heuristic

A cognitive shortcut in which judgments are made based on how much one thing resembles another.

Elimination by Aspect

A decision-making process where options are eliminated based on the absence of desired characteristics.