David has income from several sources. Which one is considered passive income? *Dividends
paid on shares of a mutual fund in his 401(k) account.Dividends paid on shares of a mutual fund
in his Roth IRA.Unemployment benefits received during a one-month layoff.Rent received from
the full-year rental of his house in the country.
Solution
Answer Rent received from the full-year rental of his house in the country.
Passive Inome is that income which arises mainly from the rental activity or by a business in
which one have financial interest but he did not pay any active role in the activities of
business.Dividend paid on shares is not considered as passive income despite of the fact that
dividend requires no active participation in the business activities.
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David has income from several sources. Which one is considered passi.pdf
1. David has income from several sources. Which one is considered passive income? *Dividends
paid on shares of a mutual fund in his 401(k) account.Dividends paid on shares of a mutual fund
in his Roth IRA.Unemployment benefits received during a one-month layoff.Rent received from
the full-year rental of his house in the country.
Solution
Answer Rent received from the full-year rental of his house in the country.
Passive Inome is that income which arises mainly from the rental activity or by a business in
which one have financial interest but he did not pay any active role in the activities of
business.Dividend paid on shares is not considered as passive income despite of the fact that
dividend requires no active participation in the business activities
