That is a nice list of passive income sources. Actually, the most up-to-date list of dividend growth stocks is the list of dividend champions, maintained by Dave Fish. The list of dividend aristocrats is incomplete at best. For example, the dividend champions list has over 100 companies that have managed to increase dividends each year for at least 25 years in a row. The list of dividend aristocrats has no more than 50 – 60.

However, self-publishing is a good option for generating passive income and fits very well with the “work-up-front, reap benefits later” model. It’s a ton of work to write a book, especially when you’re just getting everything like editing, formatting, cover design, and book descriptions all figured out. But, once you do all that work, you can upload it to Amazon and then hopefully keep earning commissions for months or even years.

I just started out with Affiliate Marketing (idea # 8) and it is not as easy as people make out to be. For me, the hardest part so far, is learning Search Engine Optimization (SEO) and driving traffic to my website. I’m only 3 months into it, but I am confident that the site will begin to generate some incom., I have to give it 6-9 months, so we’ll see.
We have 1 rental at the moment and we are renovating the second one. Last year we generated over $14,000 net passive income (after mortgage payments and taxes) from one apartment, and all I had to do was go in to inspect the property 3 times to make sure the tenants weren’t destroying it! It turned out they kept it in perfect condition and they were lovely people! Call me lucky.
If you buy T-bills worth of N500,000 at 10 per cent discount rate, CBN will debit your account with N450,000, leaving a balance of N50,000. This means that your interest of N50,000 has been paid to you upfront. When your investment matures, you are still paid your N500,000.This shows that you were actually paid N550,000 for your investment of N500,000. (Source)
The Digital Reflection Panel is a rewards program that tracks characteristics about your internet usage. You can quickly earn $50 your first month and a minimum of $170 your first year. Since you receive the installation bonus only once, you will earn $120 each subsequent year. Not only that, but every 3 consecutive months you’re enrolled in the program you get a bonus.
4. Home Office: Passive income investors, not unlike most professionals that work from home, are allowed to deduct their home office; provided it meets the minimal criteria. What’s more, this deduction helps both renters and homeowners. You can deduct your home office whether you on the home it is in or are simply renting it. However, like every other deduction on this list, the home office must meet certain requirements to qualify for a deduction.
2. Repairs: Slightly more ambiguous than their interest deduction counterpart, repairs can only be deducted in the event that they are ordinary, necessary, and reasonable in amount. That said, repairs can only be deducted in the year in which they are made. Common repairs that can be deducted from your taxes come April are fixing leaks, repainting, plastering, replacing broken windows and fixing floors.
Even if you’re personally liable for the repayment of a borrowed amount or you secure a borrowed amount with property other than property used in the activity, you aren’t considered at risk if you borrowed the money from a person having an interest in the activity or from someone related to a person (other than you) having an interest in the activity. This doesn’t apply to:
The major problem with network marketing in Nigeria is the way many people go about implementing it. Most people focus on introducing more people to a network without properly training their downlines or providing them any support. The result is that only the experienced people at the top of the network make money while the others feel their way in the dark, wondering which step to take.

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In mid-2017, I sold my San Francisco rental property for 30X annual gross rent and reinvested $500,000 of the proceeds in real estate crowdfunding. I’m leveraging technology to invest in lower valuation properties with higher net rental yields in the heartland of America. With the new tax policy starting in 2018 capping state income and property tax deductions to $10,000 and limiting interest deduction on mortgages of only $750,000 from $1,000,000, expensive coastal city real estate markets should soften at the expense of non-coastal city real estate.

If you have specialized knowledge in a certain topic, you can put together an online course to teach others. For example, if you have experience in real estate investing, you can create an online course “Real Estate Investing 101”. The benefit of an online course is that once you create the course material, you can sell it to as many people as you want.

Our favorite platform for this is RealtyMogul because you get the flexibility to invest as little as $1,000, but can also participate in REITs and private placements – typically not offered to the public. Investors can fund real estate loans to gain passive income or buy an equity share in a property for potential appreciation. Their platform is open to both accredited and non-accredited investors.

Herbert and Wilma are married and file a joint return. Healthy Food, an S corporation, is a grocery store business. Herbert is Healthy Food's only shareholder. Plum Tower, an S corporation, owns and rents out the building. Wilma is Plum Tower's only shareholder. Plum Tower rents part of its building to Healthy Food. Plum Tower's grocery store rental business and Healthy Food's grocery business aren’t insubstantial in relation to each other.
Most people think about building a site to make money and passive income. But you actually can buy an existing website to make a passive income. I have many friends who don’t like to write and create content for their website, so they just pay people to do that for them. They only care about SEO, and they want it to be well ranked in Google. It’s entirely ok, but if you don’t want to be a website creator and entrepreneur, you can buy a website and manage it like a business.
Have you developed a particular brand or system that others can benefit from?  The options here vary quite a bit.  For example the rock band Def Leppard is able to license their brand because of their massive success.  Or look at a college sports franchise like the UW Badgers, who have created an amazing brand around a great sports team (Go Badgers!), everything from t-shirts to coffee mugs.  All of these are potential sources of passive income, if you are the one that has created the brand or process of course!
The equipment leasing exclusion also isn’t available for leasing activities related to other at-risk activities, such as motion picture films and video tapes, farming, oil and gas properties, and geothermal deposits. For example, if a closely held corporation leases a video tape, it can’t exclude this leasing activity from the at-risk rules under the equipment leasing exclusion.
Though it can take a while to build up enough cash to put a 20% down payment on an investment property (the typical lender minimum), they can snowball fairly quickly. The key here is to correctly project income and expenses in order to calculate cash flow (the free cash you can put in your pocket after all associated property expenses have been paid). However you have to be sure to include the cost of a property manager in your calculations unless you want to manage the property yourself. Even with a property manager, you may be required to make large repair decisions every now and then – so while this is not a 100% passive activity, you are not directly trading your time for money like traditional employment.

Those who meet the IRS' definition of a real estate professional have their real estate investments treated as active income. To meet this definition, you must spend at least 750 hours per year working in the real estate industry. Paid employees who own at least 5 percent of a real estate business also are considered a professional. If you are a full-time developer for your own account or a full-time real estate agent paid only on commission, you are a real estate professional. In these two instances, you can use losses from your investments to offset income you make in other real estate business activities.

One of the most important assets you have is your credit score. By taking care of it and pursuing the steps to improve your credit score, a world of opportunity can open up for you. If you need a loan to buy that rental property or some quick funding through a business credit card, a good credit score will help you get approved so you can build passive income.


This one is for people who want to work hard but make significant money online. Online learning courses have become very popular on the web, and you can find a lot of Youtube who starts selling courses in their field. It depends on the knowledge you have. If you have an extensive knowledge in Financial Education, then go and open a course. If you are a book bike rider, you can make a course about riding a bike and earn a significant passive income from that.
The appeal of these passive income sources is that you can diversify across many small investments, rather than in a handful of large ones. When you invest directly in real estate, you have to commit a lot of capital to individual projects. When you invest in these crowdfunded investments, you can spread your money across many uncorrelated real estate ventures so individual investments don't cause significant issues.
It’s obvious that stocks outperform real estate in terms of capital gains, but I would like to see S&P compare to Real Estate in SF, Manhattan, LA. Our house in NC was $80,000 20 years ago. It’s only $150,000 now. Same house in Santa Monica went from $200,000 to $1.8 million. People who happen to bought real estate in major metropolitan would have a natural positive association with real estate investment.

It's a little awkward, so we'll get straight to the point: This Thursday we humbly ask you to defend Wikipedia's independence. We depend on donations averaging about $16.36, and only ask you for one gift a year. But 98% of our readers in the U.S. are not responding to our messages, and time is running out to help in 2018. If everyone reading this gave $2.75, we could keep Wikipedia thriving for years to come. The price of your Thursday coffee is all we need. People warned us not to make Wikipedia a non-profit. But if Wikipedia were commercial, it would be a great loss. Wikipedia unites all of us who love knowledge: contributors, readers and the donors who keep us thriving. The heart of Wikipedia is a community of people working to bring you unlimited access to reliable information. Please take a minute to keep Wikipedia growing. Thank you.


You must file a written statement with your original income tax return for the tax year in which you regroup the activities. The statement must provide the names, addresses, and EINs, if applicable, for the activities that are being regrouped. If two or more activities are being regrouped into a single activity, the statement must contain a declaration that the regrouped activities make up an appropriate economic unit for the measurement of gain or loss under the passive activity rules. In addition, the statement must contain an explanation of the material change in the facts and circumstances that made the original grouping clearly inappropriate.
Ebooks are one of my favorite sources of passive income. Now, you can do this the simple way and just publish it on Amazon's KDP. Or, you can go all out and build yourself a book funnel. Book funnels are powerful, but they won't be fully passive. For example, if you do a free-plus-shipping offer for your ebook (converting it into a physical book), you'll need to create some one-time offers (i.e. extra training) and up-sells (i.e. an audiobook). But, a book funnel can be very powerful.
A Risk Score of 10 means no risk. A Return Score of 1 means the returns are horrible compared to the risk-free rate. A Feasibility score of 10 means everybody can do it. A Liquidity Score of 1 means it’s very difficult to withdraw your money without a massive penalty. An Activity Score of 10 means you can kick back and do nothing to earn income. To make the ranking as realistic as possible, every score is relative to each other. Furthermore, the return criteria is based off trying to generate $10,000 a year in passive income.
Real estate crowdfunding presents a middle-ground solution. Investors have their choice of equity or debt investments in both commercial and residential properties. Unlike a REIT, the investor gets the tax advantages of direct ownership, including the depreciation deduction without any of the added responsibilities that go along with owning a property.
I love real estate investing, but it requires a lot of upfront capital plus you are going to have to learn to love your tenants (see point 6 below)! Crowdfunded real estate investing gives you a way to still invest in the real estate market, without having to necessarily put in a lot of money upfront. It’s definitely a much more passive investment than owning a flat or a house!
Logan is a CPA with a Masters Degree in Taxation from the University of Southern California. He has been featured in publications such as Debt.com. He has nearly 10 years of public accounting experience, including 5 with professional services firm Ernst & Young where he consulted with multinational companies and high net worth individuals on their tax situations. He launched Money Done Right in 2017 to communicate modern ideas on earning, saving, and investing money.
Let’s say I am a parttime real estate investor with buy and hold rentals. I have a normal W-2 job but decided for educational purposes to take/pass the state real estate licensing exam. Now if I have an opportunity and want to work on nights/weekends as a real estate agent, does my passive rental income now get taxed (and much higher) as active income? Or does this come down to whether I work +\- 500 hours as an agent?

One of the latest trends is crowdfunding / syndications where money is pooled together to directly invest in various real estate properties.  You do not get quite the variety and diversification you would in a REIT but it provides an opportunity to invest a smaller amount of money than purchasing a property directly.  Usually, you are a limited partner in a partnership.  Since you are not materially involved in the day to day activities, the income generated is passive income.
Whether you take a “distribution” (aka free-cash-flow) in the form of a dividend, interest payment, capital gain, maturing ladder of a CD, etc, you are still taking the same amount of cash out of your portfolio. Don’t fall for the trap of sub optimizing your overall portfolio’s performance because your chasing some unimportant trait called “income”.
We know from years of feedback from readers, amazon sellers, and family and friends what most people want in a passive income. The Independently published top 10 passive incomes is exactly that – it’s a simple passive income that hits all the right notes. Whether you have any experience or not, this book will help guide you on how to create passive income with little to no start up costs. A proven list of ways to create passive income starting with less than 500. When it comes to finding a optimal passive income, the Independently published top 10 passive incomes is definitely your first choice.
Why did P2P lending get a liquidity ranking of 6? It is quite possibly the most illiquid investment option you listed. You said you rank liquidity by “difficulty level of withdrawing your money without a massive penalty”, and for Lending Club notes, it’s not only difficult and extremely time consuming to sell all of your notes in their super illiquid market, but you would have to sell your notes at large losses to hope to get others interested in buying your notes. On top of that, it is impossible to withdraw your money any other way other than just waiting for interest/principal to pay off every month until maturity in 3 to 5 years. You can’t just one day tell Lending Club “I want to quit, please give me my money back.” One can even argue that it is less difficult to sell a home (in order to “withdraw” the money invested) than to withdraw all of their money from a P2P loan portfolio because it is very possible to sell a home before 3 to 5 years.

I think also a very good way to earn a nice passive income is investing in Cryptocurrency, especially in Masternode Cryptocurrencies, which provide a passive income in coins, also those carefully picked coins grow in value, so it’s a double gain! And a great coin to invest in at the moment is GINCOIN, which is the fuel for a really succesful project. Find more at GINCOIN Website: https://gincoin.io/ 😉

Ali Boone(G+) left her corporate job as an Aeronautical Engineer to work full-time in Real Estate Investing. She began as an investor in 2011 and managed to buy 5 properties in her first 18 months using only creative financing methods. Her focus is on rental properties, specifically turnkey rental properties, and has also invested out of the country in Nicaragua.
Another benefit of investing in rental properties is the loan pay down. If you obtain a loan to buy the property, each month your tenants are paying off part of the loan. Once the mortgage on the property has been paid off, your cash flow will increase dramatically, allowing your mediocre investment to skyrocket into a full-fledged retirement program.
Ali Boone(G+) left her corporate job as an Aeronautical Engineer to work full-time in Real Estate Investing. She began as an investor in 2011 and managed to buy 5 properties in her first 18 months using only creative financing methods. Her focus is on rental properties, specifically turnkey rental properties, and has also invested out of the country in Nicaragua.
That $200,000 a year might sound like a lot to you, but the median home price in San Francisco is roughly $1.6 million or almost eight times our annual passive income. For a family of three in 2018, the Department of Housing and Urban Development declared that income of $105,700 or below was "low income." Therefore, I consider us firmly in the middle class.
Portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties. Various types of portfolio income are taxed differently. For example, capital gains on investments held for longer than 12 months are taxed at a rate of 10% to 20%, and those held for less than 12 months are taxed as regular income. However, portfolio income is not subject to social security and Medicare taxes.

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We pitched to an angel investor group. They were very excited about the idea but wanted to know who amongst us (doctor, accountant, salesman) was doing the coding. When they heard we were outsourcing it, the wind went out of their sails immediately. They did want to meet with us again once we brought a coder on board but that person proved elusive to find. Coders in our area are looking for the steady paycheck, not willing to gamble on a startup.
One customer says – “There are ways to set up passive income streams, however, and author stephen tracey has written a fantastic guide to online passive income sources with author stephen tracey passive income online secrets. “.They strongly agree that the passive income sources that don’t require an upfront investment, at least nothing more than pocket change.

Nonetheless, there is still benefit to capturing the losses on a tax return.  When you sell a primary residence, up to $500,000 of capital gain for a married couple ($250,000 for a single person) may be excluded.  Unfortunately, rental properties are not awarded this gain exclusion.  Instead, any losses that the property generates over the years can be accumulated and offset with the gain upon disposition.
Get Paid To Shop: The Shopkick app is a free mobile app that pays you walk into stores, link your credit card, scan barcodes in stores, shop online, refer friends and more. Convert points into gift cards and other cash prizes. This app makes shopping fun, and you even get a 250-point bonus when you sign-up as a new member. The best part? It's 100% FREE to join.
Personal property and services that are incidental to making real property available as living accommodations are included in the activity of holding real property. For example, making personal property, such as furniture, and services available when renting a hotel or motel room or a furnished apartment is considered incidental to making real property available as living accommodations.

Lastly, you’ll need someone to help you create your product. Unless you decide to do this yourself, you’ll need to choose wisely. There are a lot of different choices for finding a graphic designer. Fiverr.com is a cheap option for having someone create a basic icon or other graphic needs starting at $5. 99designs.com is another great option if you want to have multiple graphic designers compete against one another to pitch you their best versions of your idea. 99designs also offers a 100% money back guarantee (which I’ve used), so you have nothing to lose! Upwork.com is good for finding just about everything. You can find graphic designers, app developers, and even marketers. I would stick to a simple graphic designer and app developer. Some teams do both graphic designs and app development, but I personally like to keep those separate. From experience, I’ve gotten better content when I don’t use one-stop-shops.
There’s a saying that the biggest opportunity for improvement is at the margin. Boiled down, this means that you can reap big rewards for minor adjustments in behavior. Instead of using a check, debit card or cash to pay for daily activities and big expenses, using a cashback credit card can earn you a sizeable return each year. One of my favorite cards, the Discover it will even double all of the cash back you earn the first year!

But, wait: nothing is ever that easy; And, there's no such thing as 100 percent passive income. Building passive income actually requires hustle and an investment of time upfront to get your money off the ground and growing while you eat, sleep and play. Maintaining that growth means making sure that you're using the right tools and strategies to automate the work for you.

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