what industries typically experience high nonpassive losses 
industries that typically experience high nonpassive losses include startups technology and hospitality these industries often require significant upfront investments face intense competition and are subject to market volatility the bottom linenonpassive income is earned through active participation in activities like employment or running a business nonpassive losses are incurred from these same activities and can be used to offset nonpassive income reducing taxable income it s important for tax reasons you know the difference whether something is nonpassive or passive 