Both positions are correct, but in different circumstances. In a family partnership where capital is a material income-producing factor you can have spouses as partners where one contributes capital and has passive income while the other provides services to the partnership and has nonpassive income. In a consulting practice, where services are the source of income, a spouse cannot receive passive income when the other spouse provides the services. (Note that there are special rules for family partnerships, a topic which hasn't been raised yet in this thread.)
Ira Smilovitz