Loss resulting from taking a passive approach to investing ,such as restricting the amount of ongoing buying and selling transactions. The Internal Revenue Service (IRS) defines what losses are considered passive and sets certain rules that must be followed when these losses are claimed on a tax return.

Related information about passive activity loss (PAL):

1. Passive Activity Loss (PAL): Definition from Answers.com
   loss produced by passive investment activities. See also passive income generator (PIG) . Previous: Passive , Passed Div.
    
2. 2012 Instructions for Form 8582 - Internal Revenue Service
   Purpose of Form. Form 8582 is used by noncorporate taxpayers to figure the amount of any passive activity loss (PAL) for the current tax year and to report the ...
    
3. What is passive activity loss (PAL)? definition and meaning
   Definition of passive activity loss (PAL): Loss resulting from taking a passive approach to investing ,such as restricting the amount of ongoing buying and selling ...
    
4. PAL - Passive Activity Loss
   Potential tax disadvantage: The IRS has long presumed that the strict version of the passive activity loss (PAL) rules automatically applies to LLCs. Sow seeds ...
    
5. Form 8582
   This form reports the taxpayer's passive activity loss (PAL) limits for all business activities, if applicable. The passive activity rules limit a taxpayer's losses in an ...
    
6. Passive Activity Loss (PAL) Definition - NASDAQ.com
   Passive Activity Loss (PAL): read the definition of Passive Activity Loss (PAL) and 8000+ other financial and investing terms in the NASDAQ.com Financial ...
    
7. 2012 Draft Form 3802 -- Corporate Passive Activity Loss ... - ftb.ca.gov
   the amount of any passive activity loss (PAL) or credit for the current taxable year and the amount of losses and credits from passive activities allowed ...
    
8. 2012 Draft Form 3801 -- Passive Activity Loss Limitations - ftb.ca.gov
   Use this worksheet to figure California income (loss) from passive activities before application of passive activity loss (PAL) rules . California Adjustment ...