@Carl wrote:
Passive income can take several forms, such as dividends on stock investments, interest on a savings account or CD, as well as income derived from renting out real estate....
You really do need to get the definitions correct if you insist on posting the terms.
Passive income is income generated by a passive activity as defined in Section 469. Interest and dividends are not passive income (they are technically referred to as portfolio income) and, as such, cannot be offset by passive losses.
In short, merely because "All you do is "sit there" and collect that income " does not necessarily mean the income is passive income.
Further, not all income on a Schedule C is necessarily nonpassive income.
