At-risk
Response to the following:
a. Discuss the significance of the at-risk rules.
b. What activities are subject to the at-risk loss rules?
c. What happens to losses that are disallowed by the at-risk rules?
Passive Activities:
a. What types of trade or business activities are considered passive activities?
b. Distinguish between material participation and active participation in rental activities. Explain the significance of this difference.
c. Under the passive activity loss rules, how are dividend income and interest income treated? Can passive losses offset dividend and interest income?