Passive Loss Limitation and Its Effects on Business Income

 Passive losses occur when a taxpayer incurs expenses or losses from activities in which they do not materially participate. Common examples include rental properties, limited partnerships, or other forms of investment where the taxpayer is not actively involved in day-to-day operations. Unlike active income, such as wages or profits generated from a business the taxpayer actively manages, passive income tends to require minimal effort or involvement. For more information visit website through #passiveactivitylosslimitation