You are considered to actively participate if you participated in making management
decisions or arranging for others to provide services in a significant and bona fide sense.
Management decisions include:
- approving new tenants
- deciding on rental terms
- approving capital or repair expenditures, and
- other similar decisions.
You do not, however, actively participate if at any time during the year your interest (including your spouse’s interest) in the activity was less than 10% (by value) of all interests in the activity.
Please see What does Active Participation mean? for more information.