A passive activity loss represents the excess of the aggregate losses from all passive activities for the year over the aggregate income from all those activities.
What does PAL stand for?
PAL stands for Passive Activity Loss
This definition appears frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of PAL
We have 574 other meanings of PAL in our Acronym Attic
- Parcel Air Lift
- Parcel Airlift Service (USPS)
- Parent/Professional Advocacy League (Massachusetts, USA)
- Parents Are Listening
- Parents of Addicted Loved-Ones (various locations)
- Parochial Athletic League (various locations)
- Parolee At Large (criminal justice)
- Participatory Action Learning (various organizations)
- Partner Access onLine (Cisco)
- Parts Accumulation List
- Pathology Associates of Lexington, PA (West Columbia, SC)
- Peace and Love
- Peace at Last
- Peer ALliance (Toronto, Canada Chinese youth volunteer organisation)
- Penetration Aid Launcher
- Peninsula Athletic League (San Francisco Bay Area)
- People at Leisure (social group)
- Perceptive Assistant That Learns (DARPA)
- Performance Analysis of Logs (software)
- Performing Arts Library (various locations)
Samples in periodicals archive:
The IRS National Office ruled that the recharacterization of income from nonpassive to passive for purposes of the passive activity loss and credit limit rules of Sec.
469(a) States that any individual, estate, trust, closely held corporation and personal service corporation will have all passive activity loss and passive activity tax credits disallowed for any taxable year.
On his 1994 federal return, he treated the two rentals as separate passive activities and offset the passive activity loss from the health club against the rental income from the law firm; he reported total taxable rental income of $106,049.
Federal Income Taxation of Passive Activities, by Laura Howell-Smith and Amy Sutton (WG&L, 2008), is an online reference that gives quick answers to questions on how to minimize the tax consequences of the passive activity loss rules.
He filed his 1994 and 1995 returns and reported his combined rental losses on line 42 of schedule E, where real estate professionals report the net income or loss from all rental activities in which they materially participated under the passive activity loss rules.
Many developers are unable to effectively utilize tax credits because of alternative minimum tax requirements and passive activity loss limitations.
Through the netting process on Form 8810, Corporate Passive Activity Loss and Credit Limitations, the $20,000 capital gain allows full use of the $16,000 suspended PALs and the $2,000 current-year PALs.