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Your text defines "horizontal communication" as
Passive Loss Rules
Tax regulations that limit the amount of losses investors can deduct from passive activities, including some investments in real estate.
Materially Participate
The level of involvement by a taxpayer in the operations of a business that is sufficient enough to qualify for tax deductions related to active participation.
At-risk Amount
The amount of money in a particular investment that can be claimed as a deduction in the event of a loss.
Passive Activities
Economic activities in which the investor does not materially participate, and which often have different tax implications, such as rental property income.
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