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 8582 Form 2011

2011-2025 Form

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Video instructions and help with filling out and completing 8582 Form

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Instructions and help about 8582 Form

all right for this video i wanted to talk about active versus passive interest in a business and specifically uh the passive activity loss limitation rules so if you're an owner in a pass-through entity so it's an s corp or a partnership you need to be very careful about categorizing your participation in the business because if the company is generating losses that is going to drive whether or not you can deduct those losses on your federal tax return okay so if we start with some of the basics here in section 469 defines a passive activity as any trade or business activity in which a taxpayer does not materially participate in the business okay so pal or passive activity losses are losses generated from those passive activities now when a taxpayer reports a laws from passive activities on their form 1040 those losses can offset other types of passive income but you are not allowed to offset active income with those losses so i think the best way to illustrate this is

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