Healthy soils are important. Dirty hands hold an earthworm. Photo by Belle Love kids.

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* This is an excerpt from Business or Hobby? Active or Passive?

The deduction of expenses from an activity that is not engaged in for profit generally is limited to the amount of gross income derived from that activity. In other words, a loss from an activity that a taxpayer does not engage in for profit cannot be used to offset the other income of the taxpayer. In such a case, the taxpayer must take deductions attributable to the activity in the following order and only to the extent stated in the following three categories:

Category 1 Deductions

Deductions the taxpayer can take for personal as well as for business activities are allowed in full. For individuals, all nonbusiness deductions, such as those for home mortgage interest, taxes, and casualty losses, fall into this category.

Category 2 Deductions

Deductions that do not result in an adjustment to the basis of property are allowed next, but only to the extent the taxpayer’s gross income from the activity is more than the de­ductions under the first category. Most business deductions, such as those for advertising, insurance premiums, interest, utilities, and wages, fall into this category.

Category 3 Deductions

Business deductions that decrease the basis of property are allowed last, but only to the extent the gross income from the activity exceeds the taxpayer’s deductions under the first two categories. Deductions for depreciation, amortization, and the part of a casualty loss an individual could not deduct in Category 1 belong in this category (Code Sec. 183(b); Reg. Sec. 1.183-1(b)).


For individual taxpayers, these deductions may be taken only if deductions are itemized. Individuals take the Category 1 deductions on the appropriate lines of Schedule A (Form 1040). Individuals take the Category 2 and 3 deductions as miscellane­ous deductions on Schedule A (Form 1040).


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*This is for information purposes only and is not a substitute for legal advice or recommendations.

* This is an excerpt from Business or Hobby? Active or Passive?

Due to depreciation, rental activities often generate net losses. Since rental activities are generally automatically passive under Code Sec. 469(c)(2) and (4), irrespective of whether the taxpayer materially participates, losses from rental activities are subject to the passive activity loss limitation rules. There are some exceptions, however. The first $25,000 of rental real estate losses may be deducted against nonpassive income by taxpayers that meet an active participation test. Also, rental real estate losses are fully deductible:

  1. on rental real estate of a real estate professional if the professional materially participates in the rental real estate activity (Reg. Sec. 1.469-9(e)(1))
  2. on the sale of a rental property to an unrelated party in a fully taxable transaction (Code Sec. 469(g))
  3. when the rental activity has been properly grouped under Reg. Sec. 1.469-4(d) with a business activity and the property is used in the business activity.

In the case of any natural person, a deduction of up to $25,000 ($12,500 if married filing separately) is allowed for that portion of the passive activity loss, or the deduction equivalent of the passive activity credit for any tax year, which is attributable to all rental real estate activities with respect to which the individual actively participated (i.e., the active participation standard) in such tax year (and if any portion of such loss or credit arose in another tax year, in such other tax year) (Code Sec. 469(i)(1) and (2)). Thus, the deduction is applied on an aggregate basis and not to each individual rental activity. The $25,000 (or $12,500 if married filing separately) is subject to a phaseout for individuals with modified adjusted gross income above $100,000 (or $50,000 if married filing separately). For every $2 of modified adjusted gross income that exceeds $100,000 (or $50,000 if married filing separately), the special allowance is reduced by $1 (Code Sec. 469(i)(3)(A); Code Sec. 469(i)(5)(A)(ii)). Thus, for example, when the adjusted gross income of a single taxpayer who meets the applicable requirements exceeds $150,000, the taxpayer cannot take advantage of the special allowance. At that point, rental real estate losses are deductible only to the extent of passive income (Code Sec. 469(i)(5)(A)).

The difference between active participation and material participation is that the former can be satisfied without regular, continuous, and substantial involvement in operations, so long as the taxpayer participates, e.g., in the making of management decisions or arranging for others to provide services (such as repairs), in a significant and bona fide sense. Management decisions that are relevant in this context include approving new tenants, deciding on rental terms, approving capital or repair expenditures, and other similar decisions. Thus, the active participation standard is a lower standard than the material participation standard. Unlike the material participation requirements, there are no specific hourly requirements. It is possible that the taxpayer can meet the active participation standard for a rental property even when there is an on-site manager or a real estate agent handling the property. However, the taxpayer must be exercising his independent judgment and not simply ratifying the decisions made by the manager (Madler v. Comm’r, T.C. Memo. 1998-112).


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*This is for information purposes only and is not a substitute for legal advice or recommendations.

26. 杀真菌剂通过干扰细胞发育来抑制真菌生长。许多杀真菌剂通过破坏细胞膜、阻断关键的酶或蛋白质的功能、或干扰包括呼吸在内的各种代谢过程来发挥作用。

27. 电子传递链抑制剂是能够阻断植物体内电子传输的杀虫剂。

28. 酶的抑制剂会使蛋白质和酶的结构分解、破坏或失活,从而导致它们失去功能。

29. 核酸代谢和蛋白质合成抑制剂可以阻止RNA或DNA的构建,因此在细胞核的水平阻断细胞分裂。

30. 甾醇合成抑制剂阻断麦角甾醇的合成过程。麦角甾醇类似于人体的胆固醇,而大多数真菌需要这种物质以便生成具备功能的膜结构。

31. 许多杀真菌剂作用于多重位点。细胞发育干扰剂、膜干扰剂、呼吸抑制剂和脂类合成剂拥有未知的作用方式。

32. 在这些类别的化学制剂中,一些最常见的例子包括硫、铜、矿物油、百菌清、克菌丹、氨基甲酸酯以及多肽。

33. 杀菌剂和抗生素广泛见于所有生物,对于控制有害细菌必不可少。

34. DNA和RNA是包括细菌在内的所有生物进行繁殖所需的关键物质。 DNA合成抑制剂可以阻断DNA的合成。 这些抗生素通过与DNA或RNA合成过程相关成分的相结合而发挥作用。这将会干扰细胞的正常生理过程,并最终破坏细菌繁殖和生存的能力。这类抑制剂包括喹诺酮、甲硝唑和利福平。

35. 酶和细胞结构主要由蛋白质构成。蛋白质合成是所有细菌细胞进行繁殖和生存所必需的基本过程。细菌蛋白质合成抑制剂包括几种抗菌剂。它们通过与各种核糖体结合来影响细菌的蛋白质合成,从而破坏细菌的正常细胞代谢,并因此导致细菌的死亡或生长停止。

36. 虽然人和动物的细胞没有细胞壁,但这种结构对细菌的生长和存活具有至关重要的作用。细菌细胞壁合成抑制剂是一种通过作用于细胞壁而选择地杀菌或抑菌的药物。这类药物包括青霉素、头孢菌素、杆菌肽和万古霉素。

37. 几种杀虫剂会影响未知靶标位点的功能,或非特异性地作用于多个靶标位点。

38. 所有农药都存在抗药性的现象。最佳应对农药抗药性的策略是通过监测害虫的种群密度变化、重点分析经济损失的程度、以及采用多种策略综合防治方法来将预防抗药性作为首要的任务。

39. 只有当害虫的数量达到足以造成经济损失或威胁公众健康时,才使用农药。

40. 尽可能多地采用不同的控制策略。例如使用合成型和生物型杀虫剂、益虫、转基因植物、作物轮作和抗害虫作物来控制害虫。

41. 最好的策略是制定一项综合全面的计划在管理宿主作物的健康的同时,控制害虫的危害。

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