@davmmcdonald wrote:
How does the classification as an Active Participant specifically affect our taxes?
If you are an active participant, you can deduct up to $25,000 of loss from your rental activity provided you do not exceed the income threshold. This an exception to the passive activity loss limitation.
See https://www.irs.gov/publications/p527#en_US_2020_publink1000219124
Note: Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions.
