### Question
How does the law define rental activity?


### Answer
Under *26 U.S.C. § 469*, **rental activity** is defined as:

> any activity where payments are principally for the use of tangible property

#### Citation:
  - *26 U.S.C. § 469*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

