in [Event] Ask the Experts: Biz Recordkeeping & 1099-NEC Filing
Should I enter the foreign tax paid for property rental under Passive category income or General category income?
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Property rental is classified as Passive income. The foreign tax paid should be Passive category income.
In a nutshell:
- All income received for rental property for any reason from any source is passive income.
- All expenses paid to any source for any reason pertaining to rental property are passive expenses.
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