Passive Loss

Definition

  • Loss incurred from a passive activity. Passive loss rules limit the amount of passive loss that can be deducted to the total of a person's other income from passive activities.

Synonyms
misfortune, deficit

Related Terms and Acronyms

  • Active Income Definition,
    • Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
  • Passive Activity Definition,
    • An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
  • Passive Income Definition,
    • Income coming in on a regular basis, with little or no maintenance.
  • Recognized Gain or Loss Definition,
    • The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
  • Security Definition,
    • A tradable financial implement that represents ownership, the rights to ownership or debt.
    • Property designated as collateral.
    • A document stating ownership of a stock or bond.
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