Which of the following best describes nonpassive income?

Nonpassive income is best characterized as income that is not generated through passive activities, which typically involve limited involvement in the operation of the income-generating process. This includes wages, commissions, and income from providing services where the individual is actively engaged in the work. Nonpassive income is generally subject to ordinary income tax rates and is crucial to understanding the distinction between different types of income for tax purposes.

Other options do not adequately define nonpassive income. Income from property use can refer to rental income, which is often classified as passive unless the taxpayer qualifies as a real estate professional, thus failing to capture the full scope of nonpassive income activities. Income solely from investments typically suggests a passive nature, contrasting with the active engagement implied by nonpassive income. Finally, income derived from rental properties aligns more closely with passive income unless specific criteria are met, further refining the classification of income types.