Jack Company incurs a $50,000 loss on a passive activity during the year. The company has active income of $34,000 and portfolio income of $24,000. If Jack is a personal service corporation, it may deduct $34,000 of the passive activity loss.

true or false

Linden owns investments that produce portfolio income and Activity A that produces losses. From a tax perspective, Linda will be better off if Activity A is not passive.

true or false