active participation


Also found in: Acronyms.

active participation

An IRS term relating to passive activity losses that can be deducted only against passive activity income, not against ordinary income. Rental activities are always passive, unless you are a real estate professional.There is a small loophole—if you or your spouse actively participated in a passive rental real estate activity,you can still deduct up to $25,000 in rental activity losses from ordinary income.As a result,taxpayers are eager to prove they have active participation in their real estate investments so that large depreciation expenses, for example, can shelter income from other sources.Active participation can be shown if you make bona fide management decisions such as approving new tenants,deciding rental terms,approving expenditures,and similar activities. (See IRS Publication 925, “Passive Activity and At-Risk Rules” at the IRS Web site www.irs.gov.)

Active Participation

The level of involvement in the management of residential rental real estate property that allows the landlord to deduct annually up to $25,000 of losses from the rental of such property. You are generally considered to be an active participant if you own 10% or more of the property and you make significant management decisions, such as approving new tenants and setting the lease terms.
References in periodicals archive ?
The course under evaluation in this investigation was designed to encourage the active participation by students.
Joe was responsible for drawing many outstanding tax professionals into active participation in TEI, and, still, 15 years after Joe's retirement, many of the people he recruited are making key contributions to the Institute.
Although most of the prior law still applies to traditional or regular IRAs, the definition of active participation has changed.
Active participation on committees in professional associations is a
Subsequently, PPIC staff developed guideline drafts with the active participation of QUMC and appropriate primary care and nonprimary care departments.
Digital's UNIX product offerings already include many of the technologies being considered within the common open software environment process, and we believe our active participation in and support of this process will help ensure that our customers' needs for a truly unified UNIX environment will continue to be met.
His second point was that, through his active participation in a Projects With Industry program, he has had the opportunity to impact directly on the quality and quantity of services that are available to people with disabilities and to assure that the outcome of these services is employment.
Through active participation and involvement, enjoin all staff in the ownership of the common vision focused on individuals with disabilities and their independence.
Their active participation in the improvement of the beta version shows the professionals' interest for this new search engine focused on market research reports published on the internet.
Cleaning Service Centers Active Participation of Older dependent Territorial Delegation for Equality, Health and Social Policies in Seville.
These courses should be designed in such a way as to establish communities of learners, facilitate social interaction, active participation, cooperation, exploration, and collaboration (Hiltz, 1997; Miller, King, & Hutchens, unpublished manuscript; Spitzer, 1998).
Sometimes liturgists put all of the emphasis on "full, conscious, and active participation," but that can't happen unless you prepare during the week.