"passive activity = any activity in which the taxpayer doesn't materially participate, such as rental activities, interests in limited partnerships, S Corps."
Can anyone confirm if these are correct? (taken from my Becker notes):
1. interest in limited partnership/S Corps = passive, even if limited partner actively participated
2. interest in general partnership = passive to the general partner, when general partner doesn't actively participate.
Also,
3. if the partner in the above 2 scenarios get a k-1, k-1's "line 1 - ordinary business income" is still ordinary income to the partner?
4. what else constitutes passive activity? this is driving me crazy.
Thanks in advance!