1) Yes, it is correct that these types of income are passive.
2) No the US does not always tax Social Security. At the most Social Security 85% of you Social Security may be taxable depending on your other income. If you are Married Filing Joint and your combined income is more than $44,000 then 85% of your Social Security is taxable.
If you combined income is less than $32,000 then none of your Social Security is taxable. Between $32,000 and $44,000 50% of your Social Security is taxable.
Link to Benefits Planner from the Social Security Web Site
3) For you rental income/loss you just report the loss or income after the deductions are taken for the rental.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
