Understanding Passive Income: Types, Taxes and Examples

11 min read

Passive income may sound like a dream come true. Can you really make money without any effort or physical investment? 대답, 일부 경우에, 예.

It is possible to bring in passive income without actively working for it. 하지만, 이것은 소극적 소득 창출과 관련된 노력이나 투자가 없다는 것을 의미하지는 않습니다..

일반적으로 초기 투자가 필요합니다., 재정적 투자 또는 제품 또는 서비스를 만들기 위한 노력. 하지만 초기 작업이 중단되면, 소극적 소득원은 귀하의 직접적인 개입 없이 돈을 창출합니다..

좋아요, 오른쪽? 그것은 될 수 있습니다. 하지만 소극적 소득의 내용을 알아야 합니다., 세금이 부과되는 방식, 다이빙하기 전에. 수동 소득이란 정확히 무엇입니까? 어떻게 정의되고 과세됩니까?, and how can you start a passive income business?

What is Passive Income?

Passive income, as the name suggests, is income that can be collected with little to no personal involvement. 그만큼 IRS provides the following definition for passive activities:

Passive activities include trade or business activities in which you don’t materially participate. You materially participate in an activity if you’re involved in the operation of the activity on a regular, continuous, and substantial basis.

소극적 소득을 모으는 몇 가지 방법이 있습니다.. 대여 활동, 특정 제품 온라인 판매, 및 사업 투자 소극적 소득원의 가장 일반적인 예 중 하나입니다..

소극적 소득을 창출할 수 있다는 이점은 분명합니다.. 보통, 당신은 시간에 의해 제한됩니다, 자원, 얼마나 많은 돈을 벌 수 있는지에 대한 에너지. 그러나 소극적 소득은 그러한 개인적 제한 없이 돈을 벌 수 있는 새로운 기회를 열어줍니다..

그 말과 함께, 수동 소득은 여전히 과세됩니다. 또한, most people do need to put in some initial work to get the ball rolling on passive income.

What is Passive Income Tax?

Some people might wonder if passive income is taxed or not. And the answer to that question is yes. Passive income may be taxed differently than other income sources in some cases. 하지만, in most cases, passive income is taxed. What is the passive income tax, 바로 그거죠?

A lot of passive income, but not all of it, is taxed similarly to active income, or your personal salary. You should make sure all passive income is documented on your tax returns, just as you would your work earnings.

그 말과 함께, there are several exceptions and unique rules when it comes to passive income taxation. 예를 들어, not all rental activities are counted as passive income by the IRS:

…rental real estate activities in which you materially participate aren’t passive activities if you qualify as a real estate professional. 추가적으로, there’s a limited exception for rental real estate activities in which you actively participate.

본질적으로, what this means is that real estate professionals who invest in numerous properties do not qualify for passive income from rental properties. 하지만, most other rental activities, such as renting out a garage or in-home apartment, are considered passive income.

추가적으로, taxpayers are allowed to group certain sources of passive income together in their tax filings in some cases. Passive income businesses that are geographically linked, or share a common customer base, may be counted as one passive income stream for tax purposes.

What Passive Income Is Not Taxed?

Certain types of passive income are not taxed at all. There are only a few examples of this, 하지만, so most passive income earners should be prepared to pay taxes.

예를 들어, some investment accounts, such as a 401(케이) or IRA are not taxed. High-yield savings accounts or other investment types are taxed, 하지만.

There are also some exceptions when it comes to rental properties. Properties or rooms that are rented out for fewer than 14 days in a year do not need to be reported as passive income. 추가적으로, you may claim certain expenses if you are involved in the management or upkeep of the properties you rent.

추가적으로, taxpayers can write off losses from passive activities on their taxes in most cases. 하지만, in most cases, you cannot claim a tax deduction for passive losses which exceed passive gains.

What is a Passive Income Stream Example?

Now that you know all that, you’re probably wondering about some passive income examples. You know about a few different wants to earn passive income already.

But what is the most profitable passive income type? And how can you get started with earning passive income? Here are some of the most common ways to earn passive income.

Passive Income Examples

대여 활동

말한 바와 같이, rental activities are one of the most common ways to gain passive income. There are certain exceptions to rental income being classified as passive. 하지만, in most cases, the owner of a rental property does not actively or materially participate in accruing income. Rental property owners or Airbnb hosts, 예를 들어, almost always file their earnings as passive income.

Investments

Another way to make passive income is through investments or stocks. 다시, there are some exceptions to this. When you invest a sum of money into a business for a percentage of the earnings without participating in its operations, that is passive income.

하지만, if you invest in a business and participate in operations in a substantial capacity, the income is not passive. The distinction made by the IRS to determine passive versus active income in these cases is known as material participation. If you perform any regular or consistent activity associated with a business or organization, you are materially participating in it.

하지만, silent investments, in which an investor provides money but is not otherwise involved, are a classic example of passive income. 보시다시피, this passive income is not earned or acquired by doing nothing. The investor is still required to make the initial investment, which would likely be backed by extensive research beforehand. But the income is “passive” because they are not required to do any work to continue earning from the investment.

Online businesses

There are several potentially lucrative options for earning passive income online. 예를 들어, if you are an expert on a topic or skill, you could write an e-book 또는 produce a webinar on that subject. You can then sell that product online for a fee without needing to do any additional work after the fact. This subsequent income would be considered passive, even though there was initial work done in creating the service.

A more common type of online passive income business would involve 온라인으로 제품 판매. Selling products online that you (or your company) did not produce, 가게, or ship is a form of passive income. This type of passive income business model has become more prevalent with the rise in popularity of 하락 선박 in recent years.

Dropshipping allows businesses to sell products at a markup after purchasing them wholesale from a supplier. 이 배열에서, the supplier is responsible for both storage and shipping of the products. The seller’s primary responsibility is to facilitate product sales and provide customer service.

다시, there may be some exceptions where selling products online is not passive income. 확실히, if your business is selling your own manufactured products online, there is material participation. But online stores selling products that are made and shipped by a third party is a common passive income example.

Setting Up a Passive Income Business

You may have realized this already, but it should be stressed that “passive income” does not mean “free money”.

If you want to run a truly successful passive income business, you need to make sound financial decisions. Investments and rental properties need to be carefully researched before committing time and resources to them. 비슷하게, setting up an online store requires a bit of legwork if you want to make money.

There are a lot of factors that go into setting up and running an online store. Researching what products to sell 그리고 where to sell them should be the first step. 그 다음, figuring out your product pricing is the next crucial step, along with making product listings.

If you follow all of these steps well, and don’t actively participate in the business afterward, you can have a very profitable passive income stream. You might also perform other tasks like marketing or scaling your business later on. But these can be considered material participation. This is not a bad thing, especially if your goal is to grow your business. 하지만, it’s important to be mindful (for tax purposes) of when your income is active, rather than passive.

If you are looking to create your own online store, 엑위드 can help you. Ecwid’s easy-to-use platform makes it more convenient to ever to design, 관리하다, and grow your own online store from anywhere.

온라인 판매

With Ecwid Ecommerce, you can easily sell anywhere, 누구에게나 — 인터넷과 전 세계에서.

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Jan 1, 2023

About the author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.