### Question
Can you define what former passive activity means?


### Answer
**Former passive activity** is defined as the following in *26 U.S.C. § 469*:

> any activity which, with respect to the taxpayer—



(A) is not a passive activity for the taxable year, but



(B) was a passive activity for any prior taxable year

#### Citation:
  - *26 U.S.C. § 469*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

