When Cash Flows Are Classified as Passive Activity Income, Investors

When cash flows are classified as passive activity income, investors are subject to passive activity loss restrictions. These restrictions imply that passive income losses:

A) can be used to offset positive taxable income from other passive activities.
B) can be used to offset positive taxable income from other passive and active activities.
C) can be used to offset positive taxable income from other passive and portfolio activities.
D) cannot be used to offset positive taxable income from any type of activity.