Nonpassive Income and Losses

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Quotes of the day:

a good tooth, gets no gold

— Severin Meiland

Nonpassive income and losses constitute any income or losses that cannot be classified as passive. Nonpassive income includes any active income, such as wages, business income, or investment income. Nonpassive losses include losses incurred in the active management of a business. Nonpassive income and losses are usually declarable and deductible in the year incurred.

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