Just what it sounds like: taking an active role in the management of an enterprise. This is a determining factor for the IRS in rental real estate issues. The rules for' Active participation' are much easier to meet than the material participation rules. An active participant may generally deduct up to $25, 000 of rental real estate losses against other income. An active participant must not be a limited partner or own 10 percent or less of the property. See also Material Participation.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). active participation. Retrieved September 21, 2026, from http://smartdefine.org/active_participation/definitions/1147146 |
| Chicago | Barry Goldsmith. 2010. "active participation" http://smartdefine.org/active_participation/definitions/1147146 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, active participation, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/active_participation/definitions/1147146>. |
| MLA | Barry Goldsmith. "active participation" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/active_participation/definitions/1147146> |