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L
lynhop67
March 21, 2025
Question

What does passive loss mean?

  • March 21, 2025
  • 1 reply
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Regarding taxation. What does passive loss mean?

    1 reply

    R
    RobertB4444
    March 21, 2025

    A passive loss is generated by a passive activity.  Which really means that your money is out there making money while you sit at home - passively, one might say - and collect the revenue.  If your money goes out into the world and loses money then that passive activity can create a passive loss which can only be used to offset passive income.

     

    @lynhop67 

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