Question: Check for Understanding 1 . 1 It is important to accurately classify from rental real estate income as passive or earned income because: Earned income

Check for Understanding 1.1
It is important to accurately classify from rental real estate income as passive or earned income because:
Earned income may be subject to self-employment tax.
Passive income is not taxable.
Passive income is taxed at lower rates.
Classification is not important as long as the income is reported.
Check for Understanding 1 . 1 It is important to

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