I'm not 100% sure because it says in the Schedule C instructions: "Rental of personal property. Generally, a rental activity (such as long-term equipment leasing) is a passive activity even if you materially participated in the activity. However, if you met any of the five exceptions listed under Rental Activities in the Instructions for Form 8582, the rental of the property is not treated as a rental activity and the material participation rules explained earlier apply."
(I'm aware that rental of real estate is Sch E)
Of course, I want the answer to be it's not passive income 🙂
