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 ?
Project management support and active participation in the definition of requirements and control of the necessary project work in the field of radioactive materials (for model inventory), the field work, the geological interpretation and synthesis, system planning, security analysis (long-term, operational) and the multi-criteria decision making.
She also requested US collaboration for organizing seminars on US GSP programme and for organizing Pakistans single country exhibition in US and support through active participation in sectors specific textile expo to be held in March 2016.
The purpose of this study was to identify effective methods for promoting active participation in learning and instructional process by both learners and instructors with the final purpose of improving university education.
Over the years, Medaglia's business accumen and active participation in a wide range of non-profit organizations have elicited recognition and awards from such other prominent organizations as the National Organization of Women (NOW) and Americans of Italian Heritage.
Liturgical theorists argued, with reference to the Council's call for the "full and active participation by all the people", that the altar rail separates the activity of the clergy from the passivity Of the laity, whom the altar rail systematically excludes, they believe, from the celebration.
Disputing historians who have argued that noblewomen were confined to the domestic sphere, she finds that their experience as estate owners varied widely, from active participation in all aspects of management to neglect or willing delegation of those onerous tasks to husbands, stewards, or others.
To assist with this critical undertaking, I ask for your active participation and support.
There would be no fraud without the active participation of certain Parmalat financial advisors, accountants and lawyers.
This research effort will require the input of multidisciplinary research teams from disparate fields including biomedical scientists, behavioral scientists, social scientists, clinicians, epidemiologists, planners, developers, and architects, as well as active participation of community members.
Even as the DAV pushes its way toward the 1-million life member mark, the active participation of members at the Chapter level is more important than ever.
In retirement, Barry plans to continue his active participation in civic, economic development, and educational activities in the State of Maine.
s FEF student chapter and his dedication to the next generation of metalcasters as well as his active participation on the Cast Iron and Engineering Divisions of AFS.