Passive Activity Loss ATG - Exhibit 3.3: Passive Income Decision Tree
Publication Date - December 2004
NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.
Exhibit 3.3: Passive Income Decision Tree
Does income belong on Form 8582, i.e. is it truly passive income?
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.