In this episode, I explain the concept of multiple streams of income. I then elaborate on the different types of income as well as the concept of passive vs. active income.
Active income generally occurs when you are trading time for money.
Passive income is income that where the work involved is much less compared to the income. Usually there is still some work involved, usually upfront, but then income can continue with significant effort or time.
I also discussed the difference of active vs passive income in the eyes of the IRS, which involves whether or not your materially participated in the business.
The link for the IRS website which defines material participation is : https://www.irs.gov/publications/p925#en_US_2021_publink1000104582
I also mention Doc 2 Doc Lending, find out more information at https://www.Doc2DocLending.com
For full disclosure, I do have a financial interest in Doc 2 Doc Lending.
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