Passive Income to Wealth
Passive income to wealth is about understanding that passive income is defined by the IRS. So the income that comes not from your labor is called passive income. Once you get to a point that your income is greater the families expenses and it passive you gain time freedom.
Passive income to wealth is what everyone is trying to create; are you one of those trying to create a passive income for the rest of your life? In studying real estate I know passive income is income generated from apartment complexes or rental housing. The government issues a tax rate of 15% for passive income. Since I don't know the tax laws related to Internet marketing I don't know if the government has the same tax break for passive income online.
But passive income online I think is thought of as reselling products over and over again in creating income, but I would have to talk to some CPA s about it to know what the IRS considers passive income. I do see MLM pay plans online and I believe selling a book over and over again is royalty income. But I've always understood passive income as income not generated from your labor so you can not be participating in the company then it can be classified as passive income. But that is my goal to create passive income to wealth by using an online business, and I think it is the dream of many other people.
So passive income online would be generated by sales of your company that you are not actively participating in, many people say their business is on autopilot so it must be a former passive income, I am not sure so I do not want to claim to be an expert here. But I see it as creating an e-book and selling it over and over again; you did the labor one time and got multiple sales. I also believe it is the same thing when you create a CD set or video teaching set that you sell once, but sell for many years. That is my idea of passive income to wealth, because you really are not putting in the work all the time; only when you created the product.
Most multilevel marketing companies online or off line talk about creating passive income in their pay plan. Because even when you stop doing the business but you had created a giant down line you get paid for years from the work you did for a couple of years, and that is truly passive income in my mind. That's why I will continue to write about passive income to wealth. It will be fun to check out all the different IRS codes about passive income online. It might even make a great product once I have all my studies done. Then I can help other people understand the tax code for passive income online.
Maybe some attorney out there would like to write some articles about this subject of passive income online and how passive income to wealth is available to everyone.
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Bill Leahy is full time internet marketer; teaching people a simple way of understanding Wealth.