Gallina Blog A Primer on Passive vs. Active Loss Rules

If you are involved in or invested in any type of activity that produces a loss for tax purposes, then you need to determine whether or not you can deduct those losses under the passive loss rules. The passive loss rules, generally found in Section 469 of the Internal Revenue Code ("Code"), are very complex, and a full discussion of those rules is beyond the scope of this post; however, this post will instead serve as a brief primer of the rules.