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Deductions & credits
Investment income is not considered to be from a trade or business since it is passive in nature. If you have a substantial amount of time invested in it, to the point where it is not a passive activity, you should report it as self-employment income, thus requiring a schedule C to be filed. In that case, it is no longer considered passive and the income generated will be considered earned income.
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May 16, 2021
6:52 PM