In order for a taxpayer to be able to deduct the loss on a business activity in which she is an owner, she must demonstrate that she in the conduct of the business. If she does NOT, the activity is considered to be a passive activity. A. TrueB. False

A. True

Explanation:

For the taxpayer to show the loss of the business activity in which he or she is an owner of company, must meet and show how they can conduct the business and if they don't show this then it will be considered to be a passive activity. As a passive activity is shown by not taking any part in the material activities and for an activity to be active must be involved continuously and regularly.

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