@KMJK The individual must still materially participate in EACH rental real estate activity for it to be nonpassive. Under Sec. 469(c)(7), however, an individual can elect to aggregate all rental real estate activities and consider all such activities as one activity for purposes of determining material participation. The election is advantageous when an individual is involved in multiple rental activities and the taxpayer would have difficulty meeting any of the material-participation tests for each activity separately. Taxpayers should give careful consideration before making the election, however, as it is irrevocable.
DId you have more than 1 property? Did you aggregate them as a business unit? You must select you materially participate in each activity.
https://www.journalofaccountancy.com/issues/2023/sep/passive-loss-limitations-on-rental-real-estate....
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