Investor Glossary-passive lossInvestor Glossary-passive lossInvestor Glossary-passive lossInvestor Glossary-passive lossInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Passive Loss

The HTML to link to this page
 

In US tax regulations, a passive loss is a loss that results from passive activities. The IRS defines whether or not an activity is passive, and could therefore result in a passive loss, by the standard of material participation. If the investor materially participates, any loss is not a passive loss, but must be deducted against ordinary income. An exception to this rule defining what constitutes a passive loss occurs in real estate. A loss on rental property is always counted as a passive loss, regardless of the participation of the property owner. Under existing rules, a passive loss can be carried forward to future years to offset futures passive income. For advice on proper tax treatment of a passive loss, consult a CPA.



Rate this passive loss definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use