Which types of income are generally considered taxable?

The correct choice identifies dividends, interest, and rental income as generally taxable forms of income. This is aligned with the principles of income taxation, where various types of income are subject to tax under the Internal Revenue Code.

Dividends are payments made to shareholders from a corporation’s earnings and are subject to taxation as ordinary income or qualified dividends, which may have different tax rates. Interest income is generated from savings accounts, bonds, or other interest-bearing assets, and it is taxable as well, regardless of the source. Rental income, gleaned from leasing property to tenants, is also included in the taxable income and must be reported on tax returns.

In contrast, other options focus on limited forms of income or suggest exemptions that do not align with the broad nature of taxable income as defined by tax regulations. Therefore, identifying these various types of income correctly reflects the comprehensive view of taxable sources, making option B the accurate choice.