### Question
How does Accounting Periods and Methods of Accounting define passive activity loss?


### Answer
Under *26 U.S.C. § 469*, **passive activity loss** is defined as:

> the amount (if any) by which—


(A) the aggregate losses from all passive activities for the taxable year, exceed


(B) the aggregate income from all passive activities for such 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**

