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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?
Ground Water
Underground water stored in soil or within rock pores and cracks.
Hydraulic Gradient
The slope of the water table or potentiometric surface, indicating the direction and rate of groundwater flow.
Limestone Cave
A natural underground space formed by the dissolution of limestone rock by water.
Water Table
The level below which the ground is saturated with water, marking the boundary between the soil surface and groundwater.
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