Discussion Question 11-19 (LO. 6) 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 days or less. This exception is based on the presumption that a person who rents property for this period is generally 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 not necessarily mean that it is classified as a nonpassive activity. if he is not Therefore, if the taxpayer is a material participant, the business is treated as active a material participant, it is treated as a passive activity. Feedback > Check My Work Subject to certain exceptions, all rental activities are to be treated as passive activities