Passive activity loss and credit defined
For purposes of this section—
(1) Passive activity loss
(1)Passive activity loss#
The term “passive activity loss” means the amount (if any) by which—
(A) the aggregate losses from all passive activities for the taxable year, exceed
(B) the aggregate income from all passive activities for such year.
(1)(A)#
the aggregate losses from all passive activities for the taxable year, exceed
(1)(B)#
the aggregate income from all passive activities for such year.
(2)Passive activity credit#
The term “passive activity credit” means the amount (if any) by which—
(A) the sum of the credits from all passive activities allowable for the taxable year under— (i) subpart D of part IV of subchapter A, or (ii) subpart B (other than section 27) of such part IV, exceeds
(B) the regular tax liability of the taxpayer for the taxable year allocable to all passive activities.
(2)(A)#
the sum of the credits from all passive activities allowable for the taxable year under—
(i) subpart D of part IV of subchapter A, or
(ii) subpart B (other than section 27) of such part IV, exceeds
(2)(A)(i)#
subpart D of part IV of subchapter A, or
(2)(A)(ii)#
subpart B (other than section 27) of such part IV, exceeds