a revenue source that is active when you are not

Earnings derived from a rental property, limited partnership or other enterprise in which the individual is not actively involved. Passive income does not include earnings from wages or active business participation.

Income that does not require active participation.

Income (such as investment income) that does not come from active participation in a business. Specified by the U.S. tax code.

Passive income is income from business activities in which the taxpayer does not materially participate, and all rental activities (except those of qualified real estate professionals). See also Active Income and Portfolio Income.

1. Generally, income from rents, dividends, interest, and gains from the sale of securities. 2. a new meaning created by the Tax Reform Act of 1986, distinguishes passive income or loss from active income and portfolio income.

Income generated from the licensing of intangible assets, like intellectual property.

Income generated when a person is not active in a business or occupation. Examples of situations where passive income is generated include limited partnerships, or rental income remaining after allowable deductions. ( See limited partnerships )

This is the money you get from businesses you own or rental real estate investments.

Income generated by a trade or ~business activity in which the taxpayer does not materially participate. Also see “Active income,” ‘Business,” “Income,” “Material participation,” and “Passive.

A category of income, for tax purposes, consisting of income (or losses) generated by limited partnerships and rental activities.

Income derived from business investments in which the individual is not actively involved, such as a real estate limited partnership.

There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.