jtax
Level 10

Investors & landlords

@Anonymous's is referencing sections of the Internal Revenue Code, the text of the tax laws passed by Congress. Section 61 is at 

https://www.law.cornell.edu/uscode/text/26/61

 

The basic point is that all income is taxed unless there is a specific exception.

 

There is a thing about passive losses not being allowed in some circumstances. That is in IRC 469.

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