There Are Three Main Types of Income Subject to Federal

question 15

Multiple Choice

There are three main types of income subject to federal taxation. Which of the following types of income includes income generated from rental real estate investments?

• A) Active income
• B) Portfolio income
• C) Passive activity income
• D) Residual income

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Definitions:

Multiplicative Scale

A measurement scale where units are exponentially related, often used in contexts where growth or change occurs at constant rates.

Effect Measure Modifier

A variable that alters the magnitude or direction of the association between an exposure and disease outcome.

Exposure-Disease Relationship

The association between a specific factor or exposure and the risk of developing a particular disease or health condition.

Factor X

An element, influence, or set of circumstances that contributes to a result or outcome.