When Applying the Limitations of the Passive Activity Rules,a Taxpayer's

question 106

True/False

When applying the limitations of the passive activity rules,a taxpayer's AGI is classified into active income,portfolio income and passive income.For this purpose,portfolio income includes dividends,interest,annuities,and royalties.

---

Definitions:

Paralegals

Trained legal assistants who work under the supervision of attorneys, performing tasks like legal research, document preparation, and client interviews.

Businessmen

Individuals engaged in commercial or industrial business activities, often with decision-making power and ownership stakes.

Businesswomen

Female entrepreneurs or professionals engaged in commercial or industrial activities with the aim of generating profits.

Employment Law

The area of law that deals with the rights and obligations of workers, employers, and labor unions.