Passive Activity Loss(redirected from pal)
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Passive Activity Loss (PAL)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
passive activity lossThe situation when expenses are greater than income from a passive activity.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.