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:

Reality Principle

A psychoanalytic concept describing the capacity to postpone gratification and operate according to the conditions of the external world.

Ego

In psychoanalysis, refers to the component of the personality that is responsible for dealing with reality, balancing the demands of the id and superego.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear.

Talkativeness

The tendency to engage in excessive talking, often characterized by the frequent and prolonged expression of thoughts, feelings, or information.