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Updated over 4 years ago on . Most recent reply

User Stats

16
Posts
1
Votes
Paul D.
  • Real Estate Investor
  • San Francisco, CA
1
Votes |
16
Posts

Tenants in common - who can claim active participation?

Paul D.
  • Real Estate Investor
  • San Francisco, CA
Posted

A family (parent and children) owns rental properties as tenants in common. Each co-owner has more than a 10% stake in the properties. One co-owner does 99% of the property management. However, when it comes time to approving rental applications, making decisions on capital improvements, etc., all co-owners are consulted before a decision is made. Can all family members claim active participation in this passive activity?

I have read what the IRS says about Passive Activity in Publication 925, where it says:

I'm just still unsure about whether all co-owners in my example qualify.

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