A Taxpayer May Deduct Suspended Losses of a Passive Activity

question 105

True/False

A taxpayer may deduct suspended losses of a passive activity when the taxpayer completely terminates his or her ownership of the activity.

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Definitions:

Asset

Resources owned by an individual or business that have value and can be used to meet debts, commitments, or legacies.

Liability

Legal obligations or debts that a business or individual is responsible for.

Liability

Liability refers to a company's legal financial debts or obligations that arise during the course of business operations.

Asset

An item of value owned by a person or company, regarded as having economic value and available to meet debts, commitments, or legacies.