Except as provided below, a passive activity includes any rental activity, without regard to whether the taxpayer materially participates in the activity. 1 A rental activity is any activity where ...

We’ll define both and show you the differences, including which types of income qualify as active and which are passive. Both incomes are required throughout your lifetime, but combining the power of ...

A recent case, Senty v. United States, provides several important lessons for tax return preparers . Mr. Senty was involved ...

Passive income is generated through investments or work completed in the past that continues to yield returns without the need for continuous manual input. In the world of finance, it can stem from a ...

Taxation of passive income follows specific principles that distinguish it from active income. Generally, passive income is subject to tax, but the rules and rates can differ markedly from those ...