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Real Estate Rental Activity Assignment

Author:
February 18th, 2020

Caroline owns a real estate rental activity that produces a loss of $65,000 during the current year.

Complete the statement below regarding the circumstances that would allow Caroline treat the entire loss as nonpassive.

If Caroline is a real estate professional who performs more than [____] hours of service in the real estate rental activity as a participant and that participation constitutes half of her personal services for the year, she can treat the entire $65,000 as nonpassive.

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