Passive activity

Passive activity

Passive activity consists of a trade or business in which the taxpayer does not materially participate, or any rental activity. Losses and tax credits from a passive activity may only be taken against the taxpayer's aggregate income from all passive income and not against active income or portfolio income, I.R.C. § 469.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Real estate investment
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Related terms

passive activity

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account

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accounting principles

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