What Is Passive Income?

Business & Management
#1

Earnings from a rental property, limited partnership, or other business in which a person is not actively participating are referred to as passive income. Passive income, like active income, is typically taxed.
Passive income proponents are often supporters of a work-from-home and be-your-own-boss professional lifestyle. In recent years, the phrase “passive income” has been thrown about a lot. It’s been used colloquially to describe money obtained on a regular basis with little or no work on the part of the recipient.

#2

Passive income is income you do not have to actively work to receive. Examples include:

  • Rental income from real estate property

  • Dividends from stock investments

  • Royalties on works to which you own a share of copyright

  • Interest on loans used as income

  • Annuities

  • Advertisement income from blogs/websites

  • Income from a computer program or app, such as a game with in-game purchases

  • Profits from a business you own but don’t run yourself

  • Social security payments