The § 469 Passive Activity Loss Rules Do Not Apply

question 105

True/False

The § 469 passive activity loss rules do not apply to corporations other than S corporations.

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Definitions:

Legally Binding Contract

An agreement between two or more parties that is enforceable by law, usually requiring an offer, acceptance, and consideration.

Disaffirmance

The legal cancellation or voiding of a contract or agreement, often due to one party's lack of capacity or discovery of a significant mistake.

Consideration

Something of value given by both parties to a contract that induces them to enter into the agreement.

Restitution

An act of restoring or paying compensation for loss or damage to the original state or owner.