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Passive loss

• A loss incurred through a rental property, limited partnership, or other enterprise in which the individual is not actively involved. Passive losses can be used to offset passive income only, not wage or portfolio income. See also: Passive Income.

 
 Embedded terms in definition
 Income
Limited partnership
Limited partner
Offset
Partnership
Passive income
Portfolio
 
 Related Terms
 Base probability of loss
Capital loss
Paper gain loss
Paper loss
Passive income
Passive investment management
Passive investment strategy
Passive portfolio
Passive portfolio strategy
Profit and loss statement
Stop loss order
Terminal loss

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No pessimist ever discovered the secret of the stars, or sailed to an uncharted land, or opened a new doorway for the human spirit. - Helen Keller

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