Examlex
Financial futures are used by FIs to manage:
Material Participation Activities
Activities in which taxpayers are involved on a regular, continuous, and substantial basis in business operations.
Significant Participation Activities
Activities involving substantial time participation, typically more than 100 hours annually, that can impact taxation, especially in passive income situations.
Adjusted Gross Income
An individual's total gross income minus specific deductions, used to determine taxable income and eligibility for certain tax benefits.
At-Risk Amount
The maximum amount of money an investor stands to lose in an investment, which limits loss deduction claims for tax purposes.
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