However, this distinction has completely blurred over time.

They remain distinct on Form 1040 with different tax treatmentOnly capital losses can offset capital gains (except for the $3,000 allowance)So even though material participation makes the loss non-passive, it's still an ordinary loss that cannot offset capital gains from stock sales on the return.The only way capital losses can become ordinary is upon the sale of your property, and that loss could offset your W2 salary.  

There is a big distinction on the variety of restrictions you need to be aware of with ADUs in Chicago specifically.

So, overall, I think these four areas are very distinct in the style of life they offer.

this is the distinct different between being an actual lender like a bank .. and an investor in a fund.. two very separate transactions.. when you lend and receive collateral on the asset you get paid when it pays off or the borrower refinances etc. 

I can see where you're coming from, as we're testing new formats and guest combos on both shows, and the distinction can be a little blurry.

Doing real estate and managing other peoples money from a fund are two very distinct skillsets.

Four distinct rate seasons. 

Yes, I understand the distinction. 

There is also a distinction to make here as units can be legal non-conforming aka grandfathered in, in which case the above scenario would be ok to consider rental income and value on all three units.