Stuart is the sole owner and a material participant in a business in which he has $50,000 at risk. If the business incurs a loss of $80,000 from operations, Stuart will be allowed the full amount as a deduction.

true or false

Except in the case of an activity involving the holding of real property, the amount a taxpayer has at-risk is increased by the taxpayer's additional non-recourse debt incurred by the partnership.

true or false

Passive losses of individuals cannot be used to offset passive income.

true or false