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passive activity loss
(redirected from pals)

   Also found in: Dictionary/thesaurus, Medical, Acronyms, Idioms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
Passive Activity Loss (PAL)
A loss incurred in participating in passive investing.

Passive Activity Loss
A loss resulting from a passive investment. For example, rental income is considered passive; if a tenant does not pay his/her rent, this may be considered a passive income loss. Passive income losses may only offset passive income gains; they may not offset earned income. Furthermore, passive income loss may not be carried back; it may only be carried forward.

passive activity loss
The situation when expenses are greater than income from a passive activity.


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