Q1.- Passive loss rules do NOT apply to a limited partner who meets which of the following material participation tests?

A.- Participation for more than 500 hours in the activity during the year.

B.- Material participation in the activity for any five of the ten tax years immediately preceding the current year.

C.- If the activity is a personal service activity, material participation in that activity for any of the three preceding tax years.

D.- All of the above.

Q2.- After separating passive activities into rental real estate and other passive activities, which step must be completed next to determine the allowable losses when a taxpayer has multiple passive activities?

A.- Figure the allowable loss from other passive activities.

B.- Figure the allowable loss from rental real estate activities with active participation.

C.- Figure the income or loss from each separate activity in the usual manner.

D.- Figure the allowable loss from rental real estate activities with significant participation.