REIT dividends are considered ________ income and thus do not qualify as passive income to offset passive losses.

Question

Quizplus · Accepted Answer

REIT dividends are considered portfolio income, which is a type of passive income. However, for the purpose of offsetting passive losses, only certain types of passive income, such as rental income or income from a business in which the taxpayer does not materially participate, can be used. REIT dividends do not qualify as such, and therefore cannot be used to offset passive losses.

REIT Dividends Are Considered ________ Income and Thus Do Not