In general
If this paragraph applies to any taxpayer for a taxable year—
(i)#
paragraph (2) shall not apply to any rental real estate activity of such taxpayer for such taxable year, and
(ii)#
this section shall be applied as if each interest of the taxpayer in rental real estate were a separate activity.
Notwithstanding clause (ii), a taxpayer may elect to treat all interests in rental real estate as one activity. Nothing in the preceding provisions of this subparagraph shall be construed as affecting the determination of whether the taxpayer materially participates with respect to any interest in a limited partnership as a limited partner.