Which of the following would be a passive activity? Explain. a. Kevin is a limited partner in
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a. Kevin is a limited partner in Marlin Bay Resort and owns a 15% interest in the partnership.
b. Tom owns a 15% interest in a real estate development firm. He materially participates in the management and operation of the business.
c. Jasmine owns and operates a bed-and-breakfast.
d. Howard owns an apartment complex that meets federal guidelines qualifying it as low-income housing.
e. Felicia owns a 25% working interest in an oil and gas deposit.
f. Assume the same facts as in part e, except that Felicia owns a 25% interest in a partnership that owns a working interest in an oil and gas deposit. She does not materially participate in the management and operation of the partnership.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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