What is passive activity loss rules?
The Section 469 rules that confine passive losses to passive income, suspending and carrying forward the excess until passive income arises or the activity is sold in a fully taxable disposition.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.