Because Passive Losses Are Not Deductible in Computing Either Taxable

question 53

True/False

Because passive losses are not deductible in computing either taxable income or AMTI, no AMT adjustment for passive losses is required.

---

Definitions:

Hourly Rate

The amount of money paid for one hour of work.

Equivalent

An item that holds the same worth, purpose, or significance as another within a given context.

Pay

The total money received by an employee from an employer as compensation for employment, including all bonuses and allowances.

Purchasing Power

The capability of a currency to buy goods or services, expressed as the quantity one unit can acquire.