360 Tax Martin
Level 3
s-corporation A sells his business to corp B, however corp B is unable to pay Corp A in one lump sum and structures a loan with Corp A for 3 million dollars at an interest rate of 8% to payoff the balance.   The loan is considered recourse and Corp B shareholders are prsnly liable for repayment. 
 
Is the interest from this loan considered a passive activity interest income?
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