Rental property

[user17744465357]

Is rental property considered passive or active income when you are working with property management company who asks your approval on tenants and major expenses?

[SharonD007]

Rental property income is generally classified as passive by the IRS, even when using a property management company. While your involvement in approving tenants and major expenses constitutes "active participation"—allowing you to potentially deduct up to $25,000 in losses—it does not change the classification to active (non-passive) income unless you qualify as a real estate professional.