Disallowance
(1) In general
(1)In general#
If for any taxable year the taxpayer is described in paragraph (2), neither—
(A) the passive activity loss, nor
(B) the passive activity credit,
for the taxable year shall be allowed.
(1)(A)#
the passive activity loss, nor
(1)(B)#
the passive activity credit,
(2)Persons described#
The following are described in this paragraph:
(A) any individual, estate, or trust,
(B) any closely held C corporation, and
(C) any personal service corporation.
(2)(A)#
any individual, estate, or trust,
(2)(B)#
any closely held C corporation, and
(2)(C)#
any personal service corporation.