The statement a passive activity is any activity that involves a trade or business in which the taxpayer does not materially participate or any rental activity (unless the taxpayer is engaged in a real property trade or business) is: True.
Passive activity can be defined as the way in which a person does not participate in the day to day running of a business operation or does not actively engage in the running of a business.
On the other hand non-passive activity is the reverse of passive activity in which a person involve themselves in the running of a business or take part in the running of a business.
Therefore we can conclude that the statement is true.
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The complete question is:
A passive activity is any activity that involves a trade or business in which the taxpayer does not materially participate or any rental activity (unless the taxpayer is engaged in a real property trade or business).
True /False
