Question

If an individual is not a material participant, a rental activity is considered passive. However, certain rental activities are not deemed to be rentals for passive loss purposes even if the individual is not a material participant. Which of the following is not excluded from the passive loss rules?

a.Construction equipment rentals
b.Hotel rooms
c.Apartment rentals
d.Golf course fees
e.Jet ski rentals

Answer 1

D. Golf course fees is not excluded from the passive loss rules.

Step-by-step explanation:

In the context of passive loss rules, golf course fees are not excluded from being considered passive income. While some rental activities may escape the passive loss classification, such as those listed in options a, b, c, and e, golf course fees don't fall under the exception. The nature of golf course fees doesn't typically align with the criteria that allow certain rental activities to be treated as non-passive. It's essential to differentiate between rental activities that are subject to passive loss rules and those that may qualify for exceptions based on factors like material participation or the type of rental.

Option D is answer.