Passive Losses of One Activity May Not Be Used to Offset

question 51

True/False

Passive losses of one activity may not be used to offset passive income from another activity.

---

Definitions:

Quantity Demanded

Quantity demanded refers to the amount of a good or service consumers are willing and able to purchase at a given price.

Income

The financial gains, typically recurring, from employment or returns on investments.

Normal Good

A type of good for which demand increases as the income of consumers increases, reflecting a direct relationship between income and demand.

Complements

Goods or services that are used together, where the use or consumption of one enhances the value or demand of the other.