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Which of the following activities are considered passive for the year?




I:8-13 Which of the following activities are considered passive for the year? Explain. Consider each situation;independently.;a. Laura owns a rental unit that she rents out to;students. The rental unit is Laura's only business;and she spends approximately 875 hours;per year managing, collecting the rent, advertising;and performing minor repairs. At times;she must hire professionals such as plumbers;to do the maintenance. Is the rental unit a passive;activity with respect to Laura?;b. Kami is a medical doctor who works four days;a week in a medical practice that she and five;other doctors formed. Last year she and her;partners formed another partnership that;owns and operates a medical lab. The lab;employs ten technicians, one of whom also;acts as manager. During the year Kami spent;120 hours in meetings, reviewing records, etc.;for the lab. Is the lab a passive activity with;respect to Kami?;c. Assume the same facts in part b. In addition;assume that the same group of doctors have;formed two other partnerships. One is a medical;supply partnership. Kami spent 150 hours;working for this partnership. The medical supply;partnership has five full-time employees.;Kami also spent 250 hours during the year;working for the other partnership. This partnership;specializes in providing medical services;to individuals from out of town who are;staying at local hotels and motels. This partnership;hires two full-time and six part-time;nurses. Are the lab and the two other partnerships;passive activities with respect to Kami?


Paper#27447 | Written in 18-Jul-2015

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