9 Unique Types of Passive Income

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Many people dream about living off passive income. The concept of working hard and creating a perpetual stream of income is appealing.

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Unearned income is income from sources, not from employment or a job. The IRS views unearned income as income from sources other than personal effort.

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Types of Unearned Income

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Investment Income

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Long-Term Capital Gain Distributions

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Dividend Income

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Retirement Income

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Unemployment Benefits

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9 Unique Types of Passive Income

9 Unique Types of Passive Income

9 Unique Types of Passive Income

9 Unique Types of Passive Income

Many people dream about living off passive income. The concept of working hard and creating a perpetual stream of income is appealing.

Unearned income is income from sources, not from employment or a job. The IRS views unearned income as income from sources other than personal effort.

Types of Unearned Income

Types of Unearned Income

Types of Unearned Income

Types of Unearned Income

Types of Unearned Income

Investment Income

Investment income is the profit generated from the sale of real estate or stocks. An investor selling an asset for profit will generate capital gains from the sale.

Long-Term Capital Gain Distributions

Mutual funds pay capital gains distributions to shareholders. This money comes from selling stocks, bonds, or other assets owned by the mutual fund.

Dividend Income

Dividend income results from money paid to stockholders from the dividends paid by companies.

Retirement Income

Retirement income is derived from pensions, annuities, and distributions from 401(k) plans and Individual Retirement Accounts (IRAs).

Unemployment Benefits

Unemployment benefits are paid to individuals who lose their jobs through no fault of their own.

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