"Active Participation" and "Real Estate Professional" Are Both Exceptions to the General

Multiple Choice

"Active participation" and "real estate professional" are both exceptions to the general rule for passive activity losses with rental real estate.
I.A taxpayer qualifying under both exceptions is limited to a maximum annual deduction of $25,000.
II.Active participation results from owning at least a 10% interest in the activity and arranging for repairs and maintenance and collecting rents.
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A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements are correct.
D) Neither statement is correct.