A Partially Supervised Apartment, a Senior Housing Complex for Mildly

question 109

Multiple Choice

A partially supervised apartment, a senior housing complex for mildly impaired elderly people, and a nursing home with round-the-clock care are all examples of:

• A) health-maintenance facilities.
• B) wellness programs.
• C) long-term care.
• D) double-jeopardy facilities.

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Definitions:

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.

Limited Partner

An investor in a partnership who is not involved in daily business operations and whose liability is limited to the amount invested.