Active participation
(A) In general
(A)In general#
An individual shall not be treated as actively participating with respect to any interest in any rental real estate activity for any period if, at any time during such period, such interest (including any interest of the spouse of the individual) is less than 10 percent (by value) of all interests in such activity.
(B)No participation requirement for low-income housing or rehabilitation credit#
Paragraphs (1) and (4)(A) shall be applied without regard to the active participation requirement in the case of—
(i) any credit determined under section 42 for any taxable year, or
(ii) any rehabilitation credit determined under section 47, 2 2 So in original. The comma probably should be a period.
(B)(i)#
any credit determined under section 42 for any taxable year, or
(B)(ii)#
any rehabilitation credit determined under section 47, 2 2 So in original. The comma probably should be a period.
(C)Interest as a limited partner#
Except as provided in regulations, no interest as a limited partner in a limited partnership shall be treated as an interest with respect to which the taxpayer actively participates.
(D)Participation by spouse#
In determining whether a taxpayer actively participates, the participation of the spouse of the taxpayer shall be taken into account.