Examlex
Which statement about ACL entries is FALSE?
Basis
The amount paid for an asset or investment, used to calculate gain or loss for tax purposes.
Active Participation
Involvement in making management decisions and the right to make significant and bona fide contributions to the operating and financial management of an activity.
Material Participation
A taxpayer's active and regular involvement in the operations of a business to qualify for certain tax benefits.
Passive Activity
An economic activity in which the investor does not materially participate and often includes rental activities or limited partnerships.
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