### Question
How does IN GENERAL define passive investment income?


### Answer
Under *26 U.S.C. § 1362*, **passive investment income** is defined as:

> gross receipts derived from royalties, rents, dividends, interest, and annuities

#### Citation:
  - *26 U.S.C. § 1362*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter S-Tax Treatment of S Corporations and Their Shareholders > PART I-IN GENERAL**

