TaxGuided
United States IRC sections

Statute section

IRC section 469

Passive activity losses and credits limited

Country

United States

Section

469

Updated

2026-05-20

Operative text

Section 469 generally limits a non-corporate taxpayer's deduction of passive activity losses and credits to the amount of passive activity income. Disallowed losses carry forward indefinitely and are released on the taxpayer's complete disposition of the activity to an unrelated party.

Cross-references

26 U.S.C. 141126 U.S.C. 469

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