Just-Lisa-Now-
Level 15
Level 15

Someone else dug this up, but this might help.   

Material Participation in Real Property Business – IRC Section 469(c)(7):

Beginning in 1994, and for federal purposes only, rental real estate activities of taxpayers engaged in real property business are not automatically treated as passive activities. California did not conform to this provision. 

 

P.S. Thanks for the email Marc!!


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