Question: osses or expenses generated by passive activities can be deducted only to the extent of income from all of the taxpayer's activepassiveactive and portfolioportfolio and

osses or expenses generated by passive activities can be deducted only to the extent of income from all of the taxpayer's

activepassiveactive and portfolioportfolio and passive

activities. Any unused passive losses are

suspended and lostsuspended and carried forward to future years

to offset passive income generated in those years. Otherwise, suspended losses may be used only when a taxpayer disposes of his or her entire interest in an activity.

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