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 ?
'Embrace the virtues of patience, hard work and humility; learn all you can while you can, let your quest for self-development pilot your active participation in all camp programmes, including the empowerment programme of the NYSC.
We thank the Saudi Red Crescent for its active participation in designing of the guidelines published on The International Committee of the Red Cross (ICRC) website by specialist Majid Al-Sihani, a representative of the Saudi Red Crescent to Disaster Management Advisory Group for weapons pollution in the Middle East and North Africa region, the association said in its statement.
This kind of initiative from our youth organizations encourage the youth in active participation with important activities and decisions in the community."
The Prime Minister observed that response of the people over ban on use of plastic bags in the capital was encouraging and in this regard, special focus should be made on the active participation of students and schools for making this drive a success.
The proposal, presented by the Executive, establishes a Legislative Review and Repeal Plan drawn up every four years by the President of the Republic, with the active participation of the other powers of the State and civil society.
The lecture aimed to promote the active participation of all eligible residents in the upcoming FNC Elections 2019 and raise political awareness of parliamentary life in the UAE.
"Active participation of young people in the public debate is of the utmost importance We can not make decisions about the future of young people without hearing what they want and what they dream about Europe can not afford to waste the talent and exclude young people "Young people should not only be architects of their own lives but also participate in positive change in our societies," said Gabriel Gabriel.
Kathmandu [Nepal], Aug 31 ( ANI ): The member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) condemned terrorism in all its forms and manifestations and called for active participation in combating the global menace.
THURSDAY, June 7, 2018 (HealthDay News) -- Active participation in intellectual activities among adults aged 65 years or older is associated with reduced risk of dementia, according to a study published online May 30 in JAMA Psychiatry.
Thanks to the fruitful activity of First Vice President of Azerbaijan Mehriban Aliyeva, the interest of Azerbaijani women for active participation in the country's socio-political life has increased, Hijran Huseynova, chairperson of the State Committee for Family, Women and Children Affairs, said.
The Arab Open University presented an active participation at the Oman International Exhibition Centre during the Higher Education Exhibition.
The team also emphasises students' active participation in keeping their home, school and surroundings clean for a better tomorrow, a press release said.