In certain circumstances, rental income can be considered active business income.

Question

Quizplus · Accepted Answer

Rental income can be considered active business income if the owner of the rental property is actively involved in managing and maintaining the property, such as screening tenants, collecting rent, and overseeing repairs and maintenance. However, passive rental income, where the owner is not involved in the day-to-day management of the rental property, would be considered passive investment income.

In Certain Circumstances, Rental Income Can Be Considered Active Business