A Patient Has Inflammation of the Sinuses

question 68

Multiple Choice

A patient has inflammation of the sinuses. Which of the following terms best describes this?

• A) bronchitis
• B) pharyngitis
• C) pneumonitis
• D) sinusitis

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Definitions:

Passive Loss Rules

Tax regulations that limit the amount of losses investors can deduct from passive activities, including some investments in real estate.

Materially Participate

The level of involvement by a taxpayer in the operations of a business that is sufficient enough to qualify for tax deductions related to active participation.

At-risk Amount

The amount of money in a particular investment that can be claimed as a deduction in the event of a loss.

Passive Activities

Economic activities in which the investor does not materially participate, and which often have different tax implications, such as rental property income.