PASSIVE LOSS & PASSIVE INCOME GENERATORS

General information The Passive Loss rules limit the ability of taxpayers to deduct losses from passive activities against non-passive income. Passive activities include most rental activities (Including Real Estate Investment Trusts (REITs)) and businesses in which the taxpayer does not materially participate. Passive Income Generators (PIGs) refer to activities that produce passive income, which can be used to offset passive losses, making them a useful tool for tax planning.