Series 7 Exam Question 67: Answer and Explanation

Question: 67

Passive income can be written off against?

• A. Passive losses
• B. Capital losses
• C. Both (A) and (B)
• D. Neither (A) nor (B)

Correct Answer: A

Explanation:

A. Passive income is income received from a limited partnership. Passive income can only be written off against passive losses, not capital losses.