the rules of section 469(h), except that section 469(h)(3) shall be applied without regard to the limitation to farming activity. (C) Exception for working capital Any asset (including a passive asset) which is held as a part of the reasonably required working capital needs of a trade or business shall be treated as used in the active conduct of a trade or business. (3) Passive asset For purposes of this subsection, the term passive asset means any— (A) cash or cash equivalents, (B) except to the extent provided by the Secretary, stock in a corporation or any other equity, profits, or capital interest in any entity, (C) evidence of indebtedness, option, forward or futures contract, notional principal contract, or derivative, (D) asset described in clause (iii), (iv), or (v) of section 351(e)(1)(B), (E) annuity, (F) real property used in one or more real property trades or businesses (as defined in section 469(c)(7)(C)), (G) asset (other than a patent, trademark, or copyright) which produces royalty income, (H) commodity, (I) collectible (within the meaning of section 408(m)), or (J) any other asset specified in regulations prescribed by the Secretary. (4) Look-thru rules (A) In general If a nonbusiness asset of an entity consists of a 10-percent interest in any other entity, this subsection shall be applied by disregarding the 10-percent interest and by treating the entity as holding directly its ratable share of the assets of the other entity. This subparagraph shall be applied successively to any 10-percent interest of such other entity in any other entity. (B) 10-percent interest The term 10-percent interest means— (i) in the case of an interest in a corporation, ownership of at least 10 percent (by vote or value) of the stock in such corporation, (ii) in the case of an interest in a partnership, ownership of at least 10 percent of the capital or profits interest in the partnership, and (iii) in any other case, ownership of at least 10 percent of the beneficial interests in the entity. (5) Coordination with