Match the tax terms related to Losses and Bad Debts with the correct definition Realized loss Capital loss Material participation Passive activity Suspended losses of a passive activity Section 1244 Choose... A sale or exchange involving a capital asset sold for less than its adjusted basis. Evidenced by a completed transaction or identifiable event were item is sold for less than its adjusted basis. A taxpayer may deduct unclaimed loss when the taxpayer completely terminates his or her ownership of the activity. Choose... Choose... Any rental activity or any trade or business in which the taxpayer does not materially participate. Choose... Taxpayer in a passive activity is active for more than 500 hours during the year. Choose