@MCSmith1974 wrote:
A taxpayer can materially participate in a rental activity and therefore be non-passive without meeting the real-estate-professional thresholds.
Why do you say that? Do you have special circumstances, such as short-term rental that would make it NOT a "rental activity" or have enough personal use of the property that may make it not a rental activity? Or are you doing certain grouping elections with your business?
Material Participation in a "rental activity" does NOT make it non-passive.
Or am I misunderstanding your situation or what you are asking about?
Publication 925 [see also §469(c)(2)], under "Passive Activities" says:
There are two kinds of passive activities.
Trade or business activities in which you don’t materially participate during the year.
Rental activities, even if you do materially participate in them, unless you’re a real estate professional.
https://www.irs.gov/publications/p925#en_US_2024_publink1000104565
