A trustee of a testamentary trust owns title to an apartment complex. The trustee also owns title to nine other apartment complexes in his individual name, not the name of the trust. While the trustee devotes virtually every day to managing these ten properties, he has a staff of ten people who assist him. The apartment complex that the trust owns generates a $600,000 loss for the tax year in question. on the basis of these facts, would the loss generated be deemed active or passive?

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The loss generated by the apartment complex owned by the testamentary trust is likely considered pas... View the full answer