How do the passive activity loss rules limit the deduction

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Reference no: EM132082346

Question: 1. Attempt to state the definition of a "passive activity" in one succinct sentence.

2. Next explain that definition in more detail by A) explaining how the relationship of the taxpayer to the activity affects the "passive" classification; and 2) defining "material Participation."

3. Can limited partners of a limited partnership "materially participate" in partnership activities?

4. Succinctly state the purpose of the passive activity loss rules.

5. How do the passive activity loss rules limit the deduction of losses?

Reference no: EM132082346

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