Which of the following statements is INCORRECT regarding losses on rental activities?
a. Up to $25,000 in losses from rental activities may be used to offset non-passive income.
b. In order to deduct a loss from a rental activity, the owner must be a material participant in the rental activity.
c. The maximum exception amount for active owners starts phasing out for taxpayers with AGI in excess of $100,000.
\d. Rental losses are classified as passive losses.
