Which of the Following Partnership Interests Is Not a §

question 47

Multiple Choice

Which of the following partnership interests is not a § 469 passive activity?

• A)A 20% limited interest in a partnership that operates a profitable restaurant business.The owner of the interest is an individual.
• B)A 20% limited interest in a partnership that operates a profitable restaurant business.The owner of the interest is a publicly traded corporation.
• C)A 20% general interest in a partnership that operates a profitable restaurant business.The owner of the interest is an individual who does not materially participate in the day-to-day operations of the business.
• D)A 20% limited interest in a partnership that rents single family houses and duplexes.The owner of the interest is an individual.
• E)A 20% limited interest in a partnership that operates a profitable restaurant business.The owner of the interest is a trust.

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Definitions:

Budget Resolution

A congressional decision that sets a framework for federal budgeting and spending, outlining targets for revenues, expenditures, and other fiscal measures.

Congressional Earmark

Provisions within legislation that direct approved funds to be spent on specific projects or for certain purposes, often critiqued for being non-competitive.

Specific Project

A particular and clearly defined piece of work or plan, often with set objectives, timeline, and resources allocated to its completion.

Deficit Spending

The practice of spending more money than is received in revenue, usually referring to government spending exceeding tax revenues.