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Glossary   >   P   >   "Passive Activity" Definition            Passive Activity An activity in which you do not physically participate in. This is important because you can only claim a passive loss against income generated from passive activities. You cannot claim a passive loss against active income. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Passive Activity - An activity in which you do not physically participate in. This is important because you can only claim a passive loss against income generated from passive activities. You cannot claim a passive loss against active income.