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This page needs major rewriting
Specifically, the material after the "contents" box should be removed. "Passive income" is a legal and tax concept, not a social category or get-rich scheme! —Preceding unsigned comment added by 126.96.36.199 (talk) 04:41, 6 December 2009 (UTC)
Distinction between residual income and other passive income
In your example, you stated that we could generate passive income from "Interest Income paid from bank deposits. Rental income from real estate/property. Royalties from writing a book."
There needs to be some distinction between residual income and other passive income. While investment "doesn't require work" (it's money making money) most royalty kinds of work does. The schedule of work is just different. The ultimate sales of a book represents compensation for the work that went into creating it, paid out as the value is extracted rather than during the activity of creation. —Preceding unsigned comment added by 188.8.131.52 (talk) 16:43, 6 June 2008 (UTC)
Now, there are HYIPs, Auto Surf programs, Online Mutual Fund, Online Investment and all these programs are running online.
Note: HYIP stands for High Yield Investment Program
Could we consider these programs as passive income generator?
- Wow, I think that's really pushing the edge e.g. if someone's job is to watch over a fully automated process ("push this button if that red light ever comes on" ala Homer Simpson) but the process is so good they never do anything, is their salary "passive income"? For the purpose of this article? No. But maybe you could ask the IRS (if you're in the US, maybe they'd give you a private letter ruling) or your local tax authority (are you in India?). Whatever you find out could make an interesting section on Autosurf (or maybe even Click fraud) Ewlyahoocom 10:38, 11 April 2006 (UTC)
Removed advertisement from page
Residual income redirects to this page. That term is also a financial performance metric, which compares income to expected return on investment capital. Perhaps that term should have a disambiguation page? Dukeofwulf (talk) 18:42, 1 October 2008 (UTC)
- Agreed, there is definitely a difference between "residual income" as a financial performance metric and as it is commonly used to describe a passivle investment. A disambiguaton page is certainly warranted. —Preceding unsigned comment added by 184.108.40.206 (talk) 21:11, 3 February 2010 (UTC)
There is no mention that passive income comes from ownership of something
The article only mentions "rent" without specifying it's income from sources not requiring salaried or hourly work. But, "rent" is not collectable or receivable without a ownership. Shouldn't the correlation between ownership and passive income be discussed? E.g., someone who owns and works at a business has both active and passive income. The active income is the owner's managament salary. The passive income is the profit of the business which the owner receives. —Preceding unsigned comment added by 220.127.116.11 (talk) 23:24, 17 January 2010 (UTC)
What about recurring commission from salesmen?
If "residuals" (which actually do not match the subsidiary description there) are actually called "passive income", needs a source and another section, as it doesn't resemble the main definition. — Arthur Rubin (talk) 07:59, 19 April 2010 (UTC)
Aren't passive income, according to this admittedly unreliable source: http://taxesforwriters.com/are-royalties-passive-income/ Accordingly, I've removed 'publishing a book' from the examples section, pending clarification and further research by someone who's more knowledgeable than me in this field. Meticulo (talk) 03:25, 22 October 2016 (UTC)
maybe we should edit out the examples of non passive income and have a more detailed examples of passive income ?
-Royalties paid for intellectual property such as music, books, manuscripts, computer software, or a patent;
-Earnings from internet advertisements on websites;
-Dividend and interest income in the form of cash flow or capital gains from owning securities and commodities, such as stocks, currencies, gold, silver, ETFs, and bonds, is usually referred to as portfolio income, which may or may not be considered a form of passive income. In the United States, portfolio income is considered a different type of income than passive income;
The U.S. IRS has a specific definition of passive income that excludes some of the incomes listed above. Royalties for example, are, according to the Service guide, generally non-passive in nature. Additionally, interest, dividends, annuities, and gains from stocks and bonds, lottery winnings, salaries, wages, commissions, retirement income, guaranteed payments for services are considered by the IRS to be non-passive.