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RE: The Difference in Taxation Between a S Corp and an LLC
"e) Will have an additional tax assessed if more than 25% of it's income originates from passive sources"
Does this apply to mining, day trading, or holding?
I would argue that mining constitutes active income based on the fact that it is treated as an active trade or business for purposes of the self employment tax. As portfolio income defaults to the passive category, I would consider day trading and investing (holding) to be passive income.