SlideShare a Scribd company logo
1 of 1
Download to read offline
What is the difference between Schedule C and Schedule E income (i.e. when would the same
source of income appear on one schedule or the other)?
Solution
When the income is of Active Nature it is reported as Schedule C Income. Active Income means
when a person do some activity and work to earn it. The person earning the income actively and
materially participates in the production of the income then it is Active Income.
When the income is of Passive Nature it is reported as Schedule E Income. Passive Income
means when a person does not do any activity and work to earn it. The person earning the
income does not actively and materially participates in the production of the income then it is
Passive Income.

More Related Content

More from forladies

Please answer the following at the bottom of the case. ThanksTo ne.pdf
Please answer the following at the bottom of the case. ThanksTo ne.pdfPlease answer the following at the bottom of the case. ThanksTo ne.pdf
Please answer the following at the bottom of the case. ThanksTo ne.pdf
forladies
 
Information Securityfind an article online discussing defense-in-d.pdf
Information Securityfind an article online discussing defense-in-d.pdfInformation Securityfind an article online discussing defense-in-d.pdf
Information Securityfind an article online discussing defense-in-d.pdf
forladies
 
implement the following funtions. myg1 and myg2 are seperate. x and .pdf
implement the following funtions. myg1 and myg2 are seperate. x and .pdfimplement the following funtions. myg1 and myg2 are seperate. x and .pdf
implement the following funtions. myg1 and myg2 are seperate. x and .pdf
forladies
 
I need to fill-in TODOs in .cpp file and in .h file Could some.pdf
I need to fill-in TODOs in .cpp file and in .h file Could some.pdfI need to fill-in TODOs in .cpp file and in .h file Could some.pdf
I need to fill-in TODOs in .cpp file and in .h file Could some.pdf
forladies
 
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdfFACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
forladies
 
Do you think that Canada’s perceived liberal approach to both immigr.pdf
Do you think that Canada’s perceived liberal approach to both immigr.pdfDo you think that Canada’s perceived liberal approach to both immigr.pdf
Do you think that Canada’s perceived liberal approach to both immigr.pdf
forladies
 
DiscussionApply path-goal theory to a workteamclass situation i.pdf
DiscussionApply path-goal theory to a workteamclass situation i.pdfDiscussionApply path-goal theory to a workteamclass situation i.pdf
DiscussionApply path-goal theory to a workteamclass situation i.pdf
forladies
 
Discuss the importance of identifying norms within a team. Why is cl.pdf
Discuss the importance of identifying norms within a team. Why is cl.pdfDiscuss the importance of identifying norms within a team. Why is cl.pdf
Discuss the importance of identifying norms within a team. Why is cl.pdf
forladies
 
Discuss ethical issues in Human Resource management Discuss eth.pdf
Discuss ethical issues in Human Resource management Discuss eth.pdfDiscuss ethical issues in Human Resource management Discuss eth.pdf
Discuss ethical issues in Human Resource management Discuss eth.pdf
forladies
 

More from forladies (20)

Please answer the following at the bottom of the case. ThanksTo ne.pdf
Please answer the following at the bottom of the case. ThanksTo ne.pdfPlease answer the following at the bottom of the case. ThanksTo ne.pdf
Please answer the following at the bottom of the case. ThanksTo ne.pdf
 
Mitchell sets sail for the Chemiosmotic New World, despite dire w.pdf
Mitchell sets sail for the Chemiosmotic New World, despite dire w.pdfMitchell sets sail for the Chemiosmotic New World, despite dire w.pdf
Mitchell sets sail for the Chemiosmotic New World, despite dire w.pdf
 
Learn the genetics vocabulary (see HW4)] For each of the following ge.pdf
Learn the genetics vocabulary (see HW4)] For each of the following ge.pdfLearn the genetics vocabulary (see HW4)] For each of the following ge.pdf
Learn the genetics vocabulary (see HW4)] For each of the following ge.pdf
 
If nominal GDP is 28000 and the money supply is 7000, what is velocit.pdf
If nominal GDP is 28000 and the money supply is 7000, what is velocit.pdfIf nominal GDP is 28000 and the money supply is 7000, what is velocit.pdf
If nominal GDP is 28000 and the money supply is 7000, what is velocit.pdf
 
Investments in trade securities are always short term investments. T.pdf
Investments in trade securities are always short term investments. T.pdfInvestments in trade securities are always short term investments. T.pdf
Investments in trade securities are always short term investments. T.pdf
 
Information Securityfind an article online discussing defense-in-d.pdf
Information Securityfind an article online discussing defense-in-d.pdfInformation Securityfind an article online discussing defense-in-d.pdf
Information Securityfind an article online discussing defense-in-d.pdf
 
implement the following funtions. myg1 and myg2 are seperate. x and .pdf
implement the following funtions. myg1 and myg2 are seperate. x and .pdfimplement the following funtions. myg1 and myg2 are seperate. x and .pdf
implement the following funtions. myg1 and myg2 are seperate. x and .pdf
 
If two peers share a link in the overlay (they are neighbors in the .pdf
If two peers share a link in the overlay (they are neighbors in the .pdfIf two peers share a link in the overlay (they are neighbors in the .pdf
If two peers share a link in the overlay (they are neighbors in the .pdf
 
I need to fill-in TODOs in .cpp file and in .h file Could some.pdf
I need to fill-in TODOs in .cpp file and in .h file Could some.pdfI need to fill-in TODOs in .cpp file and in .h file Could some.pdf
I need to fill-in TODOs in .cpp file and in .h file Could some.pdf
 
how important is Negative Emotionality to an accounting career plea.pdf
how important is Negative Emotionality to an accounting career plea.pdfhow important is Negative Emotionality to an accounting career plea.pdf
how important is Negative Emotionality to an accounting career plea.pdf
 
How do I know whether miscellaneous expense goes on top or bottom of.pdf
How do I know whether miscellaneous expense goes on top or bottom of.pdfHow do I know whether miscellaneous expense goes on top or bottom of.pdf
How do I know whether miscellaneous expense goes on top or bottom of.pdf
 
Given a 1024 by 1024 RAM block, answer the following questions a) If.pdf
Given a 1024 by 1024 RAM block, answer the following questions  a) If.pdfGiven a 1024 by 1024 RAM block, answer the following questions  a) If.pdf
Given a 1024 by 1024 RAM block, answer the following questions a) If.pdf
 
Fungi were originally classified as plants because they grow in plac.pdf
Fungi were originally classified as plants because they grow in plac.pdfFungi were originally classified as plants because they grow in plac.pdf
Fungi were originally classified as plants because they grow in plac.pdf
 
For the following reaction, define each of the species as acid, base.pdf
For the following reaction, define each of the species as acid, base.pdfFor the following reaction, define each of the species as acid, base.pdf
For the following reaction, define each of the species as acid, base.pdf
 
Find .Notice that t3 becomes simpler when differentiated (where as e.pdf
Find  .Notice that t3 becomes simpler when differentiated (where as e.pdfFind  .Notice that t3 becomes simpler when differentiated (where as e.pdf
Find .Notice that t3 becomes simpler when differentiated (where as e.pdf
 
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdfFACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
FACTS In the spring of 2001, Kitsmiller purchased a house in Van .pdf
 
Do you think that Canada’s perceived liberal approach to both immigr.pdf
Do you think that Canada’s perceived liberal approach to both immigr.pdfDo you think that Canada’s perceived liberal approach to both immigr.pdf
Do you think that Canada’s perceived liberal approach to both immigr.pdf
 
DiscussionApply path-goal theory to a workteamclass situation i.pdf
DiscussionApply path-goal theory to a workteamclass situation i.pdfDiscussionApply path-goal theory to a workteamclass situation i.pdf
DiscussionApply path-goal theory to a workteamclass situation i.pdf
 
Discuss the importance of identifying norms within a team. Why is cl.pdf
Discuss the importance of identifying norms within a team. Why is cl.pdfDiscuss the importance of identifying norms within a team. Why is cl.pdf
Discuss the importance of identifying norms within a team. Why is cl.pdf
 
Discuss ethical issues in Human Resource management Discuss eth.pdf
Discuss ethical issues in Human Resource management Discuss eth.pdfDiscuss ethical issues in Human Resource management Discuss eth.pdf
Discuss ethical issues in Human Resource management Discuss eth.pdf
 

Recently uploaded

Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
ciinovamais
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
negromaestrong
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
AnaAcapella
 

Recently uploaded (20)

Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Activity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdfActivity 01 - Artificial Culture (1).pdf
Activity 01 - Artificial Culture (1).pdf
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
Third Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptxThird Battle of Panipat detailed notes.pptx
Third Battle of Panipat detailed notes.pptx
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17  How to Extend Models Using Mixin ClassesMixin Classes in Odoo 17  How to Extend Models Using Mixin Classes
Mixin Classes in Odoo 17 How to Extend Models Using Mixin Classes
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Grant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy ConsultingGrant Readiness 101 TechSoup and Remy Consulting
Grant Readiness 101 TechSoup and Remy Consulting
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
2024-NATIONAL-LEARNING-CAMP-AND-OTHER.pptx
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
Explore beautiful and ugly buildings. Mathematics helps us create beautiful d...
 
Spellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please PractiseSpellings Wk 3 English CAPS CARES Please Practise
Spellings Wk 3 English CAPS CARES Please Practise
 
Dyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptxDyslexia AI Workshop for Slideshare.pptx
Dyslexia AI Workshop for Slideshare.pptx
 
Unit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptxUnit-IV; Professional Sales Representative (PSR).pptx
Unit-IV; Professional Sales Representative (PSR).pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 

What is the difference between Schedule C and Schedule E income (i.e.pdf

  • 1. What is the difference between Schedule C and Schedule E income (i.e. when would the same source of income appear on one schedule or the other)? Solution When the income is of Active Nature it is reported as Schedule C Income. Active Income means when a person do some activity and work to earn it. The person earning the income actively and materially participates in the production of the income then it is Active Income. When the income is of Passive Nature it is reported as Schedule E Income. Passive Income means when a person does not do any activity and work to earn it. The person earning the income does not actively and materially participates in the production of the income then it is Passive Income.