There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements. Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... // Finance Main article portfolio (finance) In finance, a portfolio is a collection of investments held by an institution or a private individual. ... Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings. ... // Use of the term The concept of property or ownership has no single or universally accepted definition. ... A royalty is a sum paid to the creator of performance art for the use of that art. ... A patent is a set of exclusive rights granted by a state to a person for a fixed period of time in exchange for the regulated, public disclosure of certain details of a device, method, process or composition of matter (substance) (known as an invention) which is new, inventive, and...
An income stream falling into this category, is one where money is received usually on a regular basis, where no additional effort has taken place. This does not mean no effort at all. Most passive income streams require great effort to start with.
Some examples: Interest Income paid from bank deposits. Rental income from real estate/property. Royalties from writing a book. Dividends from shares holding In finance, interest has three general definitions. ... Renting is an agreement where a payment is made for the temporary use of a good owned by another person or company. ...
Another example of passive income come from network marketing.
Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or guardian having that legal obligation.
Interestincome from a savings account opened for a child who is a minor, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true.
Interest on insurance dividends left on deposit with an insurance company that can be withdrawn annually is taxable to you in the year it is credited to your account.
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