Yes dividends are passive. But dividends are income and income is always taxed (assuming not inside a retirement plan or certain other exceptions). It is only passive activity losses that might be suspended.
And losses from stock investments (capital losses) are limited to reducing other gains or $3k of non-gain income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
