Active Income	Income from: (1) a trade or business in which the taxpayer or entity materially participates. (2) Wages, salary, commissions, etc., from services rendered by the taxpayer. (3) Gain or loss from the sale of property used in an active trade or business. (4) Income from intangible property if the taxpayer's personal efforts significantly contributed to the property's creation.
Passive Income	Income from a trade or business in which the taxpayer or entity DOES NOT materially participate.
Portfolio Income	Basically investment-type income, including but not limited to: (1) interest, dividends, annuities, and royalties not derived in the ordinary course of a trade or business, and (2) gain or loss from the disposition of property that produces portfolio income, or is held for investment