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:

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as the link between the major and minor premise.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions, each of which shares a common or middle term.

Premises

Statements or propositions from which a conclusion is logically derived in an argument.

Categorical Syllogism

A logical argument composed of three statements, where the first two are premises leading logically to a conclusion.