Category

MONEY

Category

There’s a lot of talk about passive vs nonpassive income when it comes to classifying income types. It’s important to distinguish both types of income since they both have their own characteristics and tax rules. The most obvious distinction between the two is that passive income is earned via property or from any kind of business or activity that you’re not directly involved in. This is quite literally the opposite of nonpassive income which requires direct involvement of individuals. However, there are a number of other things to keep in mind while distinguishing the two and that’s exactly why we’ve created this post. To ease the process, we’ll be discussing the differences between passive vs nonpassive income to help you develop a better understanding of the subject. What is Passive Income? https://www.youtube.com/watch?v=pJUaofyw2d4 As discussed, passive income is any kind of income that you’ve earned or accumulated from rental activity or…