Examlex
According to the text, ________ does not seem to significantly improve as judges acquire more information, whereas ________ does seem to improve considerably.
Passive Income/Loss
Earnings from rental property, limited partnerships, or other enterprises in which the individual is not actively involved.
Passive Activity Loss Rules
Regulations that limit the amount of losses taxpayers can deduct from passive activities, such as rental properties, against other income.
At-Risk Rules
Tax regulations limiting the amount of deductible losses from certain types of investments to the amount actually at risk.
Passive Activity
Economic activities in which the taxpayer does not materially participate, like rental property, often with distinct tax rules.
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