The Purpose of the Excess Business Loss Rules Is to Limit

question 11

True/False

The purpose of the excess business loss rules is to limit the amount of nonbusiness income (e.g., salaries, interest, dividends) that can be sheltered from tax as a result of business losses.

---

Definitions:

Implied Authority

A form of authorization assumed to be given by a principal to an agent as part of the agent's role, even if not explicitly stated.

Excessive Force

The application of an amount and/or frequency of force greater than that required to comply with law enforcement or legal requirements.

Privileged

Refers to having special rights, advantages, or immunities that are not available to everyone.

Representation Clause

A contractual provision where one party guarantees certain facts or conditions to be true or to occur.