Forbes without citing the code section is probably referring to IRC code section 469 which deals with passive losses and credits. this code section states that a passive activity is any activity which involves the conduct of any trade or business in which the taxpayer does not materially participate. that would likely mean you. it goes on to state that for any taxable year that the taxpayer meets the above conditions neither the passive activity loss (PAL) nor the passive activity credits, for the taxable year shall be allowed. further, it states that PAL means the excess of losses over income from passive activities for the taxable year.
so to take the loss in the year it occurs you would need passive income of at least the same amount.
however, you probably should confer with an active tax pro.
