Passive Losses That Exceed Passive Income Are Deferred Until the Taxpayer

question 75

True/False

Passive losses that exceed passive income are deferred until the taxpayer generates passive income to offset these passive losses or until the taxpayer disposes of that activity.

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Definitions:

Hispanic

Relating to, characteristic of, or derived from the people, culture, or languages of Spain, Portugal, or Latin America.

Pacific Islander

A person originating from any of the three ethnogeographic groupings of Oceania: Micronesia, Melanesia, and Polynesia.

Chronic Illness

A long-standing, persistent health condition that often requires ongoing medical attention or management.

Daily Activities

Routine tasks and behaviors performed by individuals on a daily basis, essential for personal care and living.