the.com/passive income
money that shows up without you, like a well-trained dog that also pays rent.
means earnings from an asset or system you built once, requiring minimal ongoing effort to keep collecting.
from the term gained tax-code precision in the irs's 1986 tax reform act, which split income into active, passive, and portfolio buckets to close shelter loopholes; the internet later stole the phrase and sold it as a lifestyle.
irs technicalitylegally means rental or non-material-participation business income
myth taxmost passive income starts with brutal active work
real examplesdividends, royalties, rental yield, ad revenue