Residual Income In Hong Kong - Passive Residual Income for Dummies

Passive income is income resulting from cash flow obtained on a regular basis, requiring minimal to no attempt by the recipient to maintain it.

The U.S. Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income.1 It defines passive income as only coming from two resources: rental action or"exchange or business activities in which you do not materially participate. "23 Other financial and government institutions also recognize it as an income obtained as a result of capital growth or in relation to negative gearing.

Passive income is different from earned income and portfolio income in a variety of ways. Passive income is generally defined as a stream of income earned with little effort, and it's referred to as progressive passive income when there is little effort needed from the individual receiving the passive income in order to grow the stream of income.

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Passive income differs from active income which is defined as any earned income including each of the taxable income and salary the earner gain out of working. Linear passive income describes one constantly needed to remain busy to maintain the stream of income, and once an individual chooses to quit working the income will also cease, examples of active income include salary, self-employment income, substance participation in an s corp, or even a partnership.4 portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties.5.

Any kind of cash flow property income that includes profits from ownership of capital, rent from ownership of resources such as Rental income and incoming cash flow from home or any piece of real estate, and interest from owning financial assets.6

Royalties are payments made by one company (the licensee) to another company or person (the licensor) in exchange for the right to use intellectual property (book, music, movie ) owned by the licensor.

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Types of limited partnerships might be considered passive so long as the limited partner does not have any function in the company and they exchange their own capital investment in return for a share of their activities profit.

In order to be considered a rental activity, tangible property is used by customers and the income paid out of the activity comes in the amount paid for using their property and is not considered a rental if:

"Earned Income vs Passive Income vs Portfolio Income: A Comparison - Only Ask Ben Why". Only Ask Ben Why. 2015-06-22. Retrieved 2018-05-12.

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a b "Publication 925 (2017), Passive Activity and At-Risk Rules Internal Revenue Service". www.irs.gov. Retrieved 2018-05-12.

If you're in the Internet business, then I am sure you are aware of the concept of passive income or residual income. Most probably, you've been searching the Internet for the best passive residual income ideas.

You may have thought of creating one or a number of streams of passive income to live a comfortable life or make superior savings. Whatever is the goal or the reason but you have not been really very successful so far at creating a regular source of passive income. The reason could be that you do not think it's true.

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Whatever is the actual reason in the background, the good news is that this blog gives you a few practical and well tried methods for generating passive residual income.

These ideas have worked for others and can work for you also. Pick one or two or more which suit your interest, experience and background. Once you've opted to work on them, then there should not be any looking back.

It is quite possible if you're consistent and persistent then over a time period you may build a substantial residual income. Dont be surprised is that this passive income amount exceeds your main income from your regular job or business.

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This is perhaps one of the most recommended ways of earning a passive income. Having a blog which has great readership of regular as new readers can provide access 2 more than one source of passive income.

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Nowadays it's extremely easy to produce your own site. All you need is free domain name, some hosting space and bundles like Wardress to make a website. Use an area or the topic you're passionate about and write frequently something which is unique, interesting and useful to the internet community. .