Passive or suspended losses can be deducted from ordinary income.

Name: Passive or suspended losses can be deducted from ordinary income.
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Quizplus · Accepted Answer

Passive or suspended losses are generally not deductible against ordinary income. They can typically only be deducted against passive income, and if not used, they can be carried forward to future tax years to offset passive income in those years or deducted in the year a passive activity is sold.

Passive or Suspended Losses Can Be Deducted from Ordinary Income