21) Material participation by a taxpayer in a passive activity is satisfied if the individual participates in the activity for more than 500 hours during the year.
22) For purposes of the application of the passive loss limitations, a closely-held C corporation is a C corporation where more than 50 percent of the stock is owned by five or fewer individuals at any time during the last half of the taxable year.
23) A closely-held C Corporation's passive losses may offset its active income.
24) Individuals who actively participate in the management of rental real property may deduct up to $25,000 in losses, subject to AGI limitations.
25) For purposes of applying the passive loss limitations for rental real estate, active participation requires a greater time commitment by the taxpayer than does material participation.
26) Taxpayers are allowed to recognize net passive losses from all actives up to a ceiling of $25,000.
27) A taxpayer may deduct a loss resulting from the theft of business and investment property but not a theft of personal-use property.
28) When business property involved in a casualty is totally destroyed, the amount of the loss is limited to the lesser of the taxpayer's adjusted basis in the property or the reduction in FMV.
29) In the case of casualty losses of personal-use property, the losses sustained in each separate casualty are reduced by both $100 and 10 percent of the taxpayer's AGI for the year.
30) A theft loss is deducted in the year in which the theft is discovered.