Bob Is a General Partner in Fresh Foods Partnership and Is

question 4

Essay

Bob is a general partner in Fresh Foods Partnership and is trying to determine if the income reported on his K-1 should be classified as passive or active trade or business income. List three different criteria that, if met, would allow Bob to treat the income from Fresh Foods as active trade or business income.

---

Definitions:

Somnambulism

Another term for sleepwalking, a disorder causing people to walk or perform other complex behaviors while asleep.

Narcolepsy

An ongoing sleeping disorder identified by intense drowsiness in the daytime and sudden sleep onslaughts.

Night Terrors

A sleep disorder causing feelings of panic or dread typically occurring in the first hours of NREM sleep, with the individual often having no memory of the event.

Slow-Wave Sleep

A deep sleep stage characterized by slow brain waves, minimal muscle activity, and slowed heart rate, essential for restorative sleep.