Comments on: What Are Your Passive Incomes?

By: Arbitrag

Arbitrag — Sun, 29 Nov 2009 15:28:48 +0000

Passive income is generally income that you get without additional effort. This is a bit vague, but it generally refers to regular steams of cash. The most common example is real estate, where you rent out a property and get rent from the tenant every month. It also includes dividends, interest payments, and even royalties.
The amount you get obviously varies depending on how much real estate or whatever you own.

By: HT

HT — Sun, 29 Nov 2009 15:18:43 +0000

Passive income is income you receive from a source other than your own business activity or gifts. For example, if you buy stock on the public market and it yields a dividend, that dividend is passive income. And if you sell the stock for a profit, that is passive income, too. In both cases, you earned income from other peoples’ business activity — all you did was buy and sell.
When it comes to rent, that wouldn’t necessarily be passive income because like a lot of landlords, maybe it takes your own business activity to generate the rent. For example, if you go out and get a loan to buy the property and find tenants and then make repairs (or you’re the one who hires the person to do repairs), then rent will not be passive income — it’s ordinary income because it resulted from your own business activity.

By: average_

average_ — Sun, 29 Nov 2009 11:12:05 +0000

My biggest passive income is from stock dividends. It’s only a few thousand dollars a year, but it’s money making money.