Classify and Briefly Explain the Proper Classification for Each of the Income-Generating

question 122

Essay

Classify and briefly explain the proper classification for each of the income-generating activities below.The classifications are either,"active," "passive," or "portfolio."
a.Ford Motor Company Bond interest.
b.Commissions earned from insurance sales.
c.Sale of Microsoft common stock held as an investment.
d.Income from a limited partnership investment.
e.Rental income from an apartment building and the individual owner does not qualify as a real estate professional.
f.Gain from the sale of rental real estate and the individual owner does not qualify as a real estate professional.

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Definitions:

Native Population

The indigenous peoples or original inhabitants of a particular geographical region.

Spiritual Perfection

A state of complete harmony and development in an individual's spiritual life, often pursued through various religious or philosophical practices.

Moral Obligation

A duty which one is morally compelled to perform based on ethical principles and understanding of right and wrong.

Hindu

Relating to Hinduism, a major world religion originating on the Indian subcontinent and comprising various philosophies, beliefs, and rituals.