There are three main types of income subject to federal taxation. Which of the following types of income includes income generated from rental real estate investments?

Question

Quizplus · Accepted Answer

Passive activity income includes income generated from rental real estate investments, as well as other passive activities such as limited partnerships and rental properties. Active income refers to income earned from wages or self-employment, while portfolio income includes income from investments such as stocks and bonds. Residual income is not a recognized category of income for tax purposes.

There Are Three Main Types of Income Subject to Federal