Complete the statements below regarding why some rental activities may not be treated as such under the passive activity loss rules.

Some rental activities are not treated as such for purposes of the passive activity loss rules. One exception is when property is rented for_________ or less. This exception is based on the presumption that a person who rents property for this period is generally____________ (required/not required) to provide significant services to the customer. The fact that a business is not treated as a rental activity due to the exception ______________ (does/ does not necessarily) mean that it is classified as a nonpassive activity. Therefore, if the taxpayer is a material participant, the business is treated as ______________ (active/passsive); if he is not a material it is treated as a ____________(active/passive) activity.

8.6.1