Daily Archives: July 22, 2020

Accounting Basics: Passive Activity

Accounting Basics: Passive Activity

A passive activity is a business activity in which a taxpayer does not materially participate. Material participation defined. So just what is material participation? In general, material participation requires you to be involved in the operation of the activity on a regular, continuous, and substantial basis. If you do not meet this threshold, the activity is deemed passive in the…

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