Oriole Corporation Has Active Income of $45,000 and a Passive

question 26

True/False

Oriole Corporation has active income of $45,000 and a passive activity loss of $23,000 in the current year.Under an exception, Oriole can deduct the $23,000 loss if it is a personal service corporation.

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Definitions:

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is a standard used in law to justify searches, arrests, and issuing warrants.

Warrantless Searches

Searches conducted by law enforcement without a warrant, permitted under certain conditions by law.

Consensual Searches

Searches conducted by law enforcement with the explicit consent of the individual being searched, without the need for a warrant.

Fourth Amendment

A provision of the United States Constitution that safeguards individuals' rights against unreasonable searches and seizures, requiring any warrant to be judicially sanctioned and supported by probable cause.