What does rental real estate mean on the CPA exam?
Rental real estate. Real property held to produce rent. Presumed passive, with a limited active-participation allowance and a real-estate-professional exception.
Defined against Sec. 469(i).
Which CPA exam sections use rental real estate?
Rental real estate appears in the TCP section of the CPA exam.
Related terms
- real property: Land and anything permanently attached to it, such as a building.
- like-kind exchange: A swap of real property held for business or investment, where gain is deferred rather than recognized.
- capital asset: For tax, almost everything a taxpayer owns EXCEPT inventory, receivables, and depreciable or real property used in a trade or business.
- qualified nonrecourse financing: Borrowing secured by real property from a commercial lender, where nobody is personally liable.