Passive income is earnings derived from a rental property, limited partnership or another enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and interest would, therefore, be considered passive.
“Making money while you sleep” has a nice ring to it, doesn’t it? Let’s be honest, if you want passive income for life, you have to get to the point where your assets are earning for you (even while you’re sleeping). But first, you’ll have to put in one of three things: time, money, work, or all