DianeW777
Expert Alumni

Business & farm

It's not about the income and deductions as much as it would be about material participation for limitations come into play. When you are self employed it is assumed for the most part that you and your spouse would materially participate in the actions, decision making and overall business activity. In this scenario there is no limitations with the exception of a net operating loss (NOL) or a net loss that produces a below zero income on your tax return.

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