7912. Under the passive loss rules, when do rental activities constitute passive activities?Nuco Employeercline202014-07-07T22:36:00Z2014-07-07T22:36:00Z12001145Summit Business Media92134314Site Map/Investments/Special Rules/Limitation on Loss Deductions/Passive Loss RuleTaxFactsDefaultArticle123231293-00-tf2.xml1293.00;#1958;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 2Under the passive loss rule, what is a passive activity?44900.0000000000TaxFactsDefaultArticleSBMEDIA\moss-admin2010-01-14T23:01:08Z7912. Under the passive loss rules, when do rental activities constitute passive activities?Except as provided below, a passive activity includes any rental activity, without regard to whether the taxpayer materially participates in the activity.IRC Sec. 469(c)(2). A rental activity is any activity where payments are principally for the use of tangible property.IRC Sec. 469(j)(8). However, there are a number of exceptions to this rule. An activity is not treated as a rental activity if: (1) the average rental period is less than eight days, (2) the average rental period is less than 31 days and substantial personal services are provided, (3) the rental of the property is incidental to the receipt of personal services or to a nonrental activity, (4) the taxpayer makes the property available on a nonexclusive basis during regular business hours, (5) the taxpayer rents property to a passthrough entity engaged in a nonrental activity, in his capacity as an owner of that entity, or (6) the personal use of a residence that is also rented out exceeds the greater of 14 days or 10 percent of the rental days (see Q 7746).Temp. Treas. Reg. §1.469-1T(e)(3); IRC Sec. 469(j)(10).See Q 7921 for special rules for rental real estate.