Which of the following is passive income? 1. Capital gains distributions. 2. Income from real estate ventures for a non-real estate professional. 3. Interest and dividends. 4. State and local refunds.

Which of the following is passive income? 1. Capital gains distributions. 2. Income from real estate ventures for a non-real estate professional. 3. Interest and dividends. 4. State and local refunds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Which of the following is passive income? 1. Capital gains distributions. 2.
Income from real estate ventures for a non-real estate professional. 3. Interest
and dividends. 4. State and local refunds.

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Follow-up Question

Which of the following is considered nonpassive income? Income from a trade or business in which the taxpayer does not materially participate. Ordinary income a limited partner receives from a partnership they only invested in and do NOT participate in. Portfolio income: Interest, dividends, annuities, and royalties. Rental income from a non-real estate professional.

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