Passive Income

Passive income is the ultimate: regular income with little effort.

What is Passive Income?

From the IRS point of view "passive income is any income that you get without having to materially participate in". Passive income is money obtained on a regular basis with little effort. Examples include:

  • Rental income.
  • Renewal income - income from subscription renewals, premium payments, etc.
  • Royalties - from book publishing, patents, etc.
  • Advertising income - from online ads such as Adsense, affiliate sales, referral earnings.
  • Business income - from no direct involvement in a business such as limited partnerships, multilevel marketing, coin-operated machines
  • Dividends and interest income.
  • Pensions and annuities.

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