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#3 Question 3 Provide support for your answer and/or provide a source to support

ID: 2450426 • Letter: #

Question

#3 Question 3

Provide support for your answer and/or provide a source to support it.

(assume not the year of disposition of the activity)

Passive losses are subject only to an At Risk limit similar to Ordinary losses.

Passive losses are never deductible and must be forgone.

Passive losses are only deductible against passive income plus an additional $3,000 of income from any other category.

Passive losses are only deductible against passive income.

Which best describes the main limitation applied to passive losses?

Explanation / Answer

#3 Question 3 Provide support for your answer and/or provide a source to support