• General Rules
    General Rules . Overview . Conceptually, the passive activity loss (PAL) rules of § 469 are not difficult to understand: losses and credits from passive activities cannot be used to reduce income...

  • Self-Charged Interest
    Self Charged Interest . Background . Section 469(a)(1)(A) provides that if aggregate losses from passive activities exceed aggregate income from passive activities for the taxable year, the excess...

  • Appendix A
    APPENDIX A What Qualifies as Material Participation? For purposes of the passive loss rules ( including the special relief provision for real estate professionals), a taxpayer is normally consider to...