Losses from Passive Activities That Cannot Be Deducted Currently Are

question 2

True/False

Losses from passive activities that cannot be deducted currently are carried over for up to 5 subsequent years.

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Definitions:

Idea Generation

The process of creating, developing, and communicating new concepts or solutions, often seen as the first step in the development of new products or services.

Opportunity Identification

The process of recognizing and evaluating new business opportunities in the marketplace.

Effectuating Opportunities

Taking action to transform creative ideas into viable opportunities through experimentation, partnerships, and embracing uncertain outcomes.

Search Pathway

A pathway used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities.