Passive income

Passive income is an income received on a regular basis, with little effort required to maintain it. It is closely related to the concept of "unearned income".

The American Internal Revenue Service categorizes income into three broad types, active (earned) income, passive (unearned) income, and portfolio income. It defines passive income as only coming from two sources: rental activity or "trade or business activities in which you do not materially participate." Other financial and government institutions also recognize it as an income obtained as a result of capital growth or in relation to negative gearing. Passive income is usually taxable.

Examples

Some examples of passive income are:

  • Any type of property income
  • Earnings from a business that does not require direct involvement from the owner or merchant;
  • Rent from property;
  • Interest from a bank account
  • Royalties from publishing a book or from licensing a patent or other form of intellectual property, such as computer software product;
  • Podcasts:

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    Latest News for: Interest income

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    How to plan your home budget using a home loan eligibility calculator

    The Times of India 28 Feb 2025
    This benefit applies to your home loan EMI's principal component and helps reduce your taxable income significantly.Interest payment deduction under Section 24.
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    Alpha Bank posts higher 2024 profit, upgrades guidance

    CyprusMail 28 Feb 2025
    Alpha Bank, Greece’s fourth largest bank by market value, upgraded its profit guidance on Friday after reporting a strong net profit for 2024 due to higher fee income and stable net interest income.
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    Abraxas Capital Management’s Strategic Investment in Yield-Focused Assets Proves Successful

    NULLTX 28 Feb 2025
    And guess what? That’s interest income ... In just the last two months, Abraxas Capital Management has earned $5.92 million in interest income from these positions ... The stunning $5.92 million in interest ...
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    SM Investments' core businesses propel profit growth to ₱82.6 billion

    Manila Bulletin 28 Feb 2025
    Net interest income increased eight percent with the expansion in earnings assets and growth in the bank’s service businesses ... mainly from net interest income which grew 19 percent to P₱63.5 billion.
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    UAE Banks Poised for Continued Earnings Growth Amid Monetary Tightening

    The Arabian Post 28 Feb 2025
    This performance was underpinned by high interest rates and healthy liquidity, as reported by Fitch Ratings ... This performance was due to an 8% increase in net interest income, offset by higher impairment charges and investments aimed at future growth.
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    MasTec Announces Fourth Quarter and Annual 2024 Financial Results With Record Backlog and Provides Initial ...

    Knoxville Daily Sun 28 Feb 2025
    GAAP net income was $84.7 million, or 2.5% of revenue, and diluted earnings per share were $0.95, compared to $1.2 million, or $0.01 per diluted share, in the fourth quarter of 2023 ... Net income attributable to non-controlling interests.
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    Eurobank announces €288m share buyback and 10.5 cent dividend

    CyprusMail 28 Feb 2025
    Net interest income increased by 15.3 per cent year-on-year (or 1.8 per cent excluding Hellenic Bank), reaching €2.50 billion ... The net interest margin remained stable at 2.73 per cent compared to 2023.
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    Use a mix of FDs, RDs, SIPs to grow your savings: Here's how

    Gulf News 28 Feb 2025
    Interest is paid out periodically (monthly, quarterly, etc.), suitable for those needing regular income.FD rates typically range between 6.96% and 8.00% annually, making them a reliable way to ...
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    Opinion: U.S. economy on a bumpy road to recovery

    Detroit news 28 Feb 2025
    economy in 2025, but growing debt loads will reduce disposable income and increase vulnerability to higher interest rates, all of which could lead to reduced demand and slowed growth across multiple economic sectors.
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    G20: How the Cape Town Declaration aims to transform Africa's debt landscape

    Independent online (SA) 28 Feb 2025
    "In 2023, low- and middle-income countries collectively spent $1.4 trillion (R26trl) servicing foreign debt, with interest payments reaching a staggering $406 billion ... Kikwete blamed rising interest ...
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    Colorado short-term rental study sponsors argue against regulation. Mountain town group says findings ignore workforce struggles.

    Vail Daily 28 Feb 2025
    18 presentation on the study results, Greacen said the primary drivers of housing markets are the overall health of the economy measured by unemployment, interest rates and mean income ... Income, ...
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    Education Experts Discuss Possibility of Ed. Department Closing at IOP Forum

    The Harvard Crimson 28 Feb 2025
    I’ve seen zero signs so far that even the incoming administration in the department — much less members of Congress who are responsible for the power of the purse — are actually interested in changes ...
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    NY FBI Office Holding Back Additional Epstein Docs, Kash And Pam Are On It, Phase ...

    X22 Report 28 Feb 2025
    This includes maintaining lower individual income tax rates, a higher standard deduction, and other tax breaks, costing an estimated $4.5 trillion over 10 years ... $6.8 trillion (2024) – $880 billion (interest) = $5.92 trillion.
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    Some people online are planning an ‘economic blackout' Friday. What does that mean?

    NBC Bay Area 28 Feb 2025
    ... of wealth and income inequality, driven by what he called “the financialization of the economy, where essentially the interests of shareholders are prioritized over the interests of stakeholders.”.
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    HEICO Corporation Reports Record Net Income (Up 46%), Record Operating Income (Up 26%) and Record ...

    ACCESSWIRE 27 Feb 2025
    During the first quarter of fiscal 2025, the Company recognized a $27.2 million discrete tax benefit from stock option exercises, which, net of noncontrolling interests, increased net income ...
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