Examples of Income that is NOT Passive - John R. Dundon II, Enrolled Agent
8055
post-template-default,single,single-post,postid-8055,single-format-standard,bridge-core-3.0.1,qodef-qi--touch,qi-addons-for-elementor-1.5.5,qode-page-transition-enabled,ajax_fade,page_not_loaded,,no_animation_on_touch,qode_grid_1300,footer_responsive_adv,qode-content-sidebar-responsive,qode-theme-ver-29.2,qode-theme-bridge,qode_header_in_grid,wpb-js-composer js-comp-ver-6.10.0,vc_responsive,elementor-default,elementor-kit-269
 

Examples of Income that is NOT Passive

Examples of Income that is NOT Passive

  • Rental Income from a building leased to a business where the tax payer works – Reg 1.469-2(f)(6)

  • Rental income from leased land – Reg. 1.469-2T(f)(3)

  • Income from land, a building or other property held for investment IRC 469(e)(1)(A)(ii)(II)

  • Gains on stocks or bonds – IRC 469(e)(1)(A)(ii)(II)

  • Royalties – IRC 469(e), Reg 1.469-2T(c)(3)(i)(A)

  • Covenant Not to Compete – Reg. 1.469-2c)(3)(i)(A)

  • Guaranteed Payment from Partnership (K-1 line 4) regardless if tax payer materially participated – Reg 1.469-2(e)(2)(ii)

  • Income from business if taxpayer materially participated in any 5 of the past 10 years – Reg. 1.469-5T(a)(5)

  • Income from a personal service activity if tax payer participated in any of the past 3 years – Reg 1.469-5T(a)(6)

  • Any activitiy in which the spouse materially participated – IRC 469(h)(5)

  • K-1, Line 1 income from a partnership which is considered a trader in stocks and bonds – Reg 1.469-1T(e)(6)

  • Income from an activity whcih is in the business of lending money, financing – Reg 1.469-2T(f)(4)

  • Patents, Copyrights, literary, musical or artistic composition or any other single intangible if tax payer’s personal services contributed to the creation – Reg 1.469-2T(c)(7)

  • Stock Exchange seats – not tangible property – IRC 469(j)(8), Reg. 1.469-2T(f)(3)

John R. Dundon, EA – 720-234-1177 – jddundon@comcast.net – http://prep.1040.com/jd/ – Defend Yourself Against the IRS – Enrolled with the United States Department of Treasury to Practice before the IRS – Enrolled Agent # 85353. Under contract with the IRS as a Certified Individual Taxpayer Identification Number (ITIN) Acceptance Agent – I am a Federally Authorized Tax Practitioner (USC 31 Section 330 + IRC 7525a.3.A) regulated under US Treasury Cir. 230.



Share