Question: Why is it important to identify exactly what constitutes an activity for purposes of the passive activity rules? Question content area bottom Part 1 A.

Why is it important to identify exactly what constitutes an activity for purposes of the passive activity rules? Question content area bottom Part 1 A. Suspended losses are deductible only upon the complete disposition of the passive activity. B. The rental losses allowed under the special real estate exceptions must not be mixed in with losses from other types of passive activities. C. A taxpayer's material participation in an activity is determined separately for each activity. D. All of the above

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