FONCE-9 - Rents from a Tenant in Common (TIC) Interest with No Active Participation

Rents from a tenant in common interest in commercial property in which there is no active participation is not “passive investment income" for purposes of the FONCE exemption. Active participation is not a factor in determining “passive investment income” with regard to this exemption. Since the property does not meet the definition of “residential property,” the rental income received from it does not constitute “passive investment income.”