The Passive Loss Rules Apply to Closely Held C Corporations

question 6

True/False

The passive loss rules apply to closely held C corporations and to personal service corporations but not to S
corporations.

---

Definitions:

Accord And Satisfaction

A contractual agreement where a dispute is settled by the parties involved agreeing to give and accept something of value in resolution.

Condition

A stipulation or prerequisite in a contract or agreement that must be met for the agreement to be fully enforceable.

Off-campus Neighborhoods

Residential areas located outside the boundaries of a college or university campus, often inhabited by students.

Operation Of Law

Legal changes that occur automatically due to existing laws, without the need for action by the parties involved.