The passive activity loss rules apply
A)before the loss limitation rules.
B)after the loss limitation rules only.
C)after the at-risk limitation rules only.
D)after the loss limitation and at-risk limitation rules.

Question

Quizplus · Accepted Answer

The passive activity loss rules apply after both the loss limitation and at-risk limitation rules. This means that taxpayers must first apply the at-risk limitations and the tax basis limitations before applying the passive activity loss rules.

The Passive Activity Loss Rules Apply