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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Passive loss deductions  

Definition 1.

Passive loss deductions or passive activities deductions are deductions from trades or businesses in which the taxpayer is only "passively" involved in, such as income from portfolios and tax refunds. The "loss" deductions come into play when the amount of "passive deductions" exceed "passive activity gross income" for the taxable year.
 
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