When Applying the Limitations of the Passive Activity Rules,a Taxpayer's

question 106

True/False

When applying the limitations of the passive activity rules,a taxpayer's AGI is classified into active income,portfolio income and passive income.For this purpose,portfolio income includes dividends,interest,annuities,and royalties.

---

Definitions:

Glycosidic Linkage

Covalent linkage joining two sugars; includes an oxygen atom bonded to a carbon of each sugar

Carbohydrate

Organic compounds consisting of carbon, hydrogen, and oxygen, which serve as a major energy source for the body.

Lipid

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, and other similar compounds, known for being energy storage molecules and components of cell membranes.

Nucleic Acid

Biological macromolecules, such as DNA or RNA, that store genetic information and are involved in the synthesis of proteins.