Passive income has only two sources: net rental income and income from a business in which the taxpayer does not materially participate. - https://www.irs.gov/pub/irs-mssp/pal.pdf
I searched on google that apparently rental income tax is about 20%, which confusing me because I thought passive income couldn't be taxed.
I expect you might have gotten confused in your Google search, (or simply got bad information), because there's not doubt at all that passive income can be taxed. However, it doesn't work in reverse: if you have net passive losses you can't use those to your benefit, at least not until you sell whatever investment is throwing off those losses. Passive losses can only be "used", (absent the sale of the investment), against offsetting passive income.
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