### Question
What does passive income mean?


### Answer
**Passive income** has the following meaning in *26 U.S.C. § 904*:

> any income received or accrued by any person which is of a kind which would be foreign personal holding company income (as defined in section 954(c))

#### Citation:
  - *26 U.S.C. § 904*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart A-Foreign Tax Credit**

