NOLs and rental income from non-active participation

If you receive rental income where you are not actively participating is it considered to be non-business income?

Reply to
SD
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In what context?

Reply to
Alan

Should have read your "Subject". Rental income is included on the Form

1045 Schedule A Line 1 for purposes of computing an NOL. No adjustments are made on the Schedule A Lines 6 and 7.

Your rental income would be net investment income for purposes of the Medicare Contribution Tax (3.8%).

Reply to
Alan

I realize that the instructions for form 1045 don't distinguish rental income from active participation from rental income from non-active participation. The reason that I brought up the question is that I have this old article from 2009 that categorizes rental income from non-active participation as non-business income. However, nobody else seems to be making this distinction? I was wondering if anybody has any deeper insight into the issue.

Reply to
SD

The only insight I can add is that I believe that rental losses that fall into the $25K allowable passive loss are allowed for an NOL.

Reply to
Alan

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