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Income Tax Planning
Chapter 14: Passive Activity Rules/INDIVIDUAL INVESTOR EXCEPTION
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Chapter 14: Passive Activity Rules

INDIVIDUAL INVESTOR EXCEPTION

01.Core Concepts

• Up to $25,000 deduction against non-passive income • AGI must be equal to or less than $100,000 • Phased out at AGI of $100,000 - $150,000 • Requirements • Active Participation  Requires bona fide participation in management decisions • 10% ownership interest