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:: Passive Activity Loss ATG - Exhibit 3.3: Passive Income Decision Tree
Exhibit 3.3: Passive
Income Decision Tree
Does income belong on Form 8582,
i.e. is it truly passive income?
Decision Tree
If the answer
is yes to any of the following,
income on Form 8582 lines 1a or
3a is not passive income:
-
Interest (except
self-charged interest),
dividends, royalties or
gains on stocks and
bonds
-
Income
from something other
than a rental or
business activity
-
Income
from a business where
the taxpayer works, i.e.
materially participates
-
Income
from a business in which
the taxpayer materially
participated any 5 of
the prior 10 years
If the answer
is no, income generally is
passive income.
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