An activity in which you are capable of making a profit, but you do not materially participate in the activity. An example would be a CEO who runs the company but does not work in the manufacturing department.
Related information about passive activity:
- Passive Activity Definition | Investopedia
Internal Revenue Service (IRS) defines two types of passive activity: trade or business activities not materially participated in, and rental activities even if the ...
- Tax Topics - Topic 425 Passive Activities – Losses and Credits
Nov 7, 2012 ... Guidelines for determining material participation and the rules for a real estate professional can be found in Publication 925, Passive Activity ...
- Publication 925 (2011), Passive Activity and At-Risk Rules
Before applying this limit on passive activity losses, you must first determine the amount of your loss disallowed under the at-risk rules explained in the second ...
- Passive Activity Loss Audit Technique Guide - Internal Revenue ...
Internal Revenue Service. Passive Activity Loss. Audit Technique Guide (ATG). NOTE: This guide is current through the publication date. Since changes ...
- Publication 925 (2011), Passive Activity and At-Risk Rules
Publication 925 (2011), Passive Activity and At-Risk Rules. For use in preparing 2011 Returns ... Passive Activity Limits · Who Must Use These Rules? Passive ...
- 2012 Instructions for Form 8582 - Internal Revenue Service
are carried forward until they are allowed either against passive activity ... passive activity rules must use Form. 8810, Corporate Passive Activity Loss and Credit ...
- Passive Activity - Financial Dictionary - The Free Dictionary
An investment in which an individual does not directly participate. The most common types of passive activities are rents from a property one owns and income ...
- Passive Activities - TaxAlmanac
Nov 6, 2006 ... In general, a taxpayer can only deduct passive activity losses against passive activity income. Any excess loss is carried forward until used, ...