A client moved from MN to SD. He rented the house and hired a management company to take care of the property. He still pay mortgage, RE tax, and home insurance by himself. If the house needs repair, they'll call him for approval. Can he be counted as active participation?
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I would say yes. PUB 527 page 14.
Active participation. You actively participated in a rental real estate activity if you (and your spouse) owned at least 10% of the rental property and you made management decisions or arranged for others to provide services (such as repairs) in a significant and bona fide sense. Management decisions that may count as active participation include approving new tenants, deciding on rental terms, approving expenditures, and other similar decisions.
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