When a Taxpayer Disposes of a Passive Activity by Death

question 32

Essay

When a taxpayer disposes of a passive activity by death, what happens to any unused passive losses?

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision independently.

Caretaking Ability

The capacity or skill set required to provide care for others, especially those who are dependent or have special needs.

Case Management Assessment

A systematic evaluation part of case management, where needs, strengths, and resources of a client are identified to plan appropriate services.

Environmental Challenges

Difficulties arising from the natural or built environment that affect individuals and communities.