See HERE Scroll down to the section where it says "Specific Instructions for Form 1099-NEC". Included in this section, it indicates that " Report on Form 1099NEC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. As long as the passive income is considered engaging for a trade or business inorder to operate a gain or profit, then you would typically issue a 1099NEC. No where does the publication mention that there is adifference between passive and non passive income.
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