Passive Income
/ˈpæsɪv ˈɪnkʌm/
Definitions
- (n.) Income derived from investments or sources where active involvement is minimal or not required.
Rental properties and dividends are common examples of passive income.
Related terms
See also
Commentary
Passive income is distinct from income earned through active labor and is often subject to different tax treatments; precise classification may affect legal and tax obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.