Real Estate, or physical property, is an extremely popular form of wealth building that has a elaborate area of the tax code managing it. Real Estate is the only area where “normal” people interact with things like depreciation and dealing with long term interest payments. From your family home through hotel chains, real estate governs a big swath of areas, with unique tax code rules governing it.
Passive Activities Code Section 469 defines passive activities as "any activity which involves the conduct of any trade or business, and in which the taxpayer does not materially participate." This [...]