Which of the following can be identified as a source of passive income?

Passive income refers to earnings derived from activities in which the individual is not actively involved. This typically includes earnings from rental properties, royalties, or investments where the investor does not participate in the management or operations of the business or property.

Income from rental property that the taxpayer does not manage qualifies as passive because it generates revenue automatically without requiring direct involvement from the taxpayer. For instance, if a taxpayer owns a rental property and hires a property manager to handle the day-to-day tasks, the income generated from that property would be considered passive.

In contrast, income from direct sales work, managing an active business, and salary or wages all involve active participation and effort from the taxpayer, disqualifying them as passive income sources. These types of income require ongoing involvement, decision-making, or the provision of services, which is not aligned with the definition of passive income.