1. Elaborate on (1) Active Income, (2) Portfolio Income, (3) Passive Income and Loss. Define and include some examples that fall into each category. Utilize at least one web esource in your response.
2.Allen (age 32) takes a distribution of $20,000 from his Traditional IRA account which he plans to deposit into an IRA with a different bank. During the 60-day rollover period, he gambles and loses the entire IRA balance. What income and/or penalties must he show on his tax return related to the failed rollover?