A Passive Activity Is Any Activity That Involves a Trade

question 54

True/False

A passive activity is any activity that involves a trade or business or rental activity in which the taxpayer does not materially participate.

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Definitions:

Bipolar Depression

A mental health condition characterized by extreme mood swings including emotional highs (mania or hypomania) and lows (depression).

Couvade

A phenomenon where expectant fathers experience pregnancy symptoms like weight gain, nausea, and mood swings.

Moro Reflex

An involuntary reflex found in newborns, which is triggered by a sudden loss of support or loud sound, causing the baby to fling arms out sideways and then quickly pull them back.