The document discusses partnership tax loss limitations and determining passive activity. It notes that partners must overcome 4 loss limitation rules before deducting partnership losses: (1) tax basis, (2) at-risk amount, (3) passive activity loss limitation, and (4) excess business loss limitation. To determine if an activity is passive, there are 7 tests relating to the level of material participation, such as participating over 500 hours in a year or constituting substantially all participation in the activity. Passing these tests indicates the activity is non-passive and losses can be used.