Flynn has created many different products. While his LEED exam is what got him started, he has both earned a commission from selling other people’s products and offered a commission to others who would sell his wares, and also recently created his first software, SmartPodcastPlayer.com, after realizing that most online podcast players offered only the basic stop/start/volume features. He hired a development team to create a superior one, which was a success from day 1. “We sold out 250 beta licenses in less than 24 hours, because I was addressing a need but also, I had built up an audience and trust with them … When you build that amount of trust with your audience, whatever you come out with, they will love.”
Real estate rental income is one of the best passive income opportunities I’ve taken advantage of. When you buy a rental property, you are buying a home, apartment building or commercial building, then renting it out to someone who cannot afford to buy it themselves. It is a win-win for everyone. They get a nice place for a reasonable price and you get a property that is being paid for by the tenant.

Low Income Taxpayer Clinics (LITCs) are independent from the IRS. LITCs represent individuals whose income is below a certain level and need to resolve tax problems with the IRS, such as audits, appeals, and tax collection disputes. In addition, clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. Services are offered for free or a small fee. To find a clinic near you, visit TaxpayerAdvocate.IRS.gov/LITCmap or see IRS Publication 4134, Low Income Taxpayer Clinic List.

Indeed, the tax deferral was seen by the government as so valuable that it took legislative steps in the 2018 federal budget to substantially reduce it in some circumstances. Beginning in 2019, the SBD limit will be reduced based on the amount of “adjusted aggregate investment income” (AAII) the CCPC earned in the prior year. AAII is effectively passive investment income — think interest, dividends and capital gains — with a few adjustments.
If you have anything in excess, like house space, cars or even your driveway, you can consider renting out. Since you already own these items, you wouldn’t have to go around buying new things. Simply list these things somewhere, like a room on Airbnb, to get started. You will probably have to put in some time and money for the upkeep, but otherwise it’s a pretty passive venture.
This article is great, defining the differences and emphasizing the advantages of passive income. I believe it might be helpful to list some of the tax advantages of passive income vs active income as well. These include and are not limited to: cash-flow, being able to claim depreciation, deductable loan interest, tax free refinancing and deferred taxes on sale of property via 1031 exchanges. It’s the difference between 50% taxed income and potential tax free income.

If you don’t want to write the book yourself, you can also hire a ghostwriter through various online sites like Upwork, Freelancer.com etc. writing is the best passive income ideas for 2018. See my Kindle Direct Publishing Portfolio HERE. Selling your eBook can be a great way to earn passive income forever once it’s released. You need to take significant time to make sure it is high-quality. Also, you will need to spend time promoting your eBook.
The activity is a personal service activity in which you materially participated for any 3 (whether or not consecutive) preceding tax years. An activity is a personal service activity if it involves the performance of personal services in the fields of health (including veterinary services), law, engineering, architecture, accounting, actuarial science, performing arts, consulting, or any other trade or business in which capital isn’t a material income-producing factor.
Writing an e-book is very popular among bloggers, as many have noted that “it's just a bunch of blog posts put together!” You will not only have to make an investment of time and energy to create the e-book, but market it correctly. However, if marketed correctly (through blogging affiliates in your niche, for example), you could have residual sales that last a very long time.
This is simple. Do your research and choose a paid price point. Once your app is released you can tweak your pricing to find the optimal value. From personal experience, I’ve noticed I generally make more money when choosing to go the premium route vs the budget route. Meaning, I price the app higher than my competitors to let them know they are purchasing a more premium product. Of course, this is not always the case. Sometimes the $0.99 apps do better since they generate more downloads and climb the app rankings easier. Higher app ranking means more visibility.

I live in NYC where I never thought buying rental property would be possible, but am looking into buying rental property in the Midwest where it cash flows and have someone manage it for me (turnkey real estate investing I guess some would call it). I agree with what Mike said about leverage and tax advantages, but I’m still a newbie to real estate investing so I can’t so how it will go. I have a very small amount in P2P…I’m at around 6.3% It’s okay but I don’t know how liquid it is and it still is relatively new…I’d prefer investing in the stock market.


There was a time when CDs would produce a respectable 4%+ yield. Nowadays, you’ll be lucky to find a 5-7 year CD that provides anything above 2.5% The great thing about CDs is that there are no income or net worth minimums to invest, unlike many alternative investments, which require investors to be accredited. Anybody can go to their local bank and open up a CD of their desired duration. Furthermore, a CD is FDIC insured for up to $250,000 per individual, and $500,000 per joint account.
In identifying the items of deduction and loss from an activity that aren’t disallowed under the basis and at-risk limitations (and that therefore may be treated as passive activity deductions), you needn’t account separately for any item of deduction or loss unless such item may, if separately taken into account, result in an income tax liability different from that which would result were such item of deduction or loss taken into account separately.
If you are too risk-averse to engage in stock trading, there’s a much safer option to earn passive income, albeit with much lower margins of return: certificates of deposit or fixed deposits issued by banks. These financial vehicles are similar to mini investments. CDs work very similar to savings accounts with one notable difference. Once you place a deposit, it cannot be withdrawn until the certificate matures. You can obtain these certificates for lump sums of cash that you can allow to mature within time periods like 2 years or 5 years. The advantage of CDs is that they offer higher interest rates than regular savings accounts. You can rest assured that the money will be safe in the bank. A CD earns interest quarterly or annually and all you have to do is just sit back and wait for it to mature.
​Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
As interest rates have been going down over the past 30 years, bond prices have continued to go up. With the 10-year yield (risk free rate) at roughly 2.55%, and the Fed Funds rate at 1.5% (two more 0.25% hikes are expected in 2018), it’s hard to see interest rates declining much further. That said, long term interest rates can stay low for a long time. Just look at Japanese interest rates, which are negative (inflation is higher than nominal interest rate).
The E-Commerce model is an interesting one. The idea is that you get products made cheaply (usually China) through a site like Alibaba, ship them to a warehouse (or your own house!), put the product description up on Amazon (or your own website), get some sales and then send out the product. There is a big learning curve with this one and you need some money up-front to get the products.
If you’re looking for an investment that offers a seamless user experience, real estate crowdfunding is your tool. Companies like RealtyMogul.com connect investors to debt and equity investment opportunities online, without the hassle of dealing with large banks or financial institutions. The online functionality appeals to all skill levels, from first-timers to veteran investors. In just a few clicks, investors can access the best real estate deals.
If you know anything well, a place, how to fix something, how to make something, how to do something, you can write a guide for it. You can sell your guide as an e-book, offer it as a download for a fee on your site or reach out to bloggers with similar content and ask if they will offer it as a paid download on their website (for a price of course).
If the property in the syndication was held for at least a year, the gain will be treated as long term capital gain subject to 15%/20% capital gains rate.  Any depreciation taken on the property is subject to recapture and taxed at 25%.  The issuance of a K-1 usually results in a taxpayer needing to extend their individual tax return as most K-1s are not sent out until after the regular due date April 15.

Domain names cannot be replicated. If one is taken, the only recourse would be to approach the owner to discuss a sale. While there are other variations you could choose, sometimes owning a certain domain (especially if it is attached to your business) can be worth the premium. Often, people will scout out domain names that are still available, buy them, and then sit on them in order to sell them down the road. Depending on who may want the domain down the road, you could sell it for a large markup.
The only thing better than making money is making money while you sleep. That’s the whole concept behind passive income. You can spend more time with your family and friends, perfect your golf swing or learn another language. The possibilities are endless because you’ve set up passive income streams that provide you a paycheck without needing to clock in. Here are the 10 best passive income ideas that will rock your world.
4. Calculate how much passive income you need. It's important to have a passive-income goal — otherwise, it's very easy to lose motivation. A good goal is to try to generate enough passive income to cover basic living expenses such as food, shelter, transportation, and clothing. If your annual expense number is $30,000, divide that figure by your expected rate of return to see how much capital you need to save. Unfortunately, you've got to then multiply the capital amount by 1.25 to 1.5 to account for taxes.
According to NOLO, “the home office deduction is available only if you are running a bona fide business.” That means any work dedicated to your passive income property from the confines of your own home can’t be a hobby. “If the IRS decides that you are indulging a hobby rather than trying to earn a profit, it won’t let you take the home office deduction.”
Passive income, in a nutshell, is money that flows in on a regular basis without requiring a substantial amount of effort to create it. The idea is that you make an upfront investment time and/or money but once the ball is rolling, there's minimal maintenance required going forward. That being said, not all passive income opportunities are created equally. For investors, building a solid portfolio means knowing which passive investing strategies to pursue.
In determining whether qualified nonrecourse financing is secured only by real property used in the activity of holding real property, disregard property that’s incidental to the activity of holding real property. Also disregard other property if the total gross fair market value of that property is less than 10% of the total gross fair market value of all the property securing the financing.
In January 2018, I missed my chance of raising the rent on my new incoming tenants because it didn't come to mind until very late in the interview process. I didn't write about my previous tenant's sudden decision to move out in December 2017 after 1.5 years, because they provided a relatively seamless transition by introducing their longtime friends to replace them. I didn't miss a month of rent and didn't have to do any marketing, so I felt I'd just keep the rent the same.
In 2012, even I wrote a 150-page eBook about severance package negotiations that still regularly sells about ~35 copies a month at $85 each (2nd edition for 2017) without any effort. In order to generate $2,975 a month or $35,700 a year in passive income as I do now, I would need to invest $892,500 in something that generates a 4% yield! To earn $10,000 a year in passive income would therefore need roughly $250,000 in capital.

I wish I had more time to put into real estate. Given the run up since 2012, I may even be interested in selling my condo that I currently rent out. I need to get it appraised to really see what it’s worth, but I think conservatively it’s gone up ~50%, although rent is probably only up ~10% or so. I am bullish on rents going up in the future… mostly in line with inflation, or perhaps even slightly faster due to constricted credit and personal income growth which should provide a solid supply of renters. At this point, I just don’t want to manage the property. I’ll probably look into a property manager as my time is likely worth turning it into a nearly passive investment.
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.
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.
Those who don't meet this test can qualify for a limited $25,000 allowance for losses if they qualify as an active participant. Active participation requires only limited activities, such as approving new tenants, setting rental terms, and approving payouts. If you qualify, you can then take up to that limited amount of loss each year, carrying over any excess losses until you generate rental income to offset it.

Book sales ($36,000 a year): Sales of How to Engineer Your Layoff" continue to be steady. I expect book sales to rise once the economy starts to soften and people get more nervous about their jobs. It's always best to be ahead of the curve when it comes to a layoff by negotiating first. Further, if you are planning to quit your job, then there is no downside in trying to engineer your layoff so you can get WARN Act pay for several months, a severance check, deferred compensation, and healthcare.

Passive income is the concept of developing an income stream that can last into perpetuity with limited ongoing work. Passive income does not come without hard work. Do not let the word ‘passive’ fool you because it takes significant work. However, if you do it right upfront you will reap significant benefits over the long-term. Track your passive income with Personal Capital.
First, ask yourself if your app idea is feasible. Will it make money? This information is completely free and available on every single app store. Browse the “Top Grossing” section of any category. Check the rankings. These rankings show you the market demand. It’s not rocket science, but this isn’t the first step that most people take. Do you already see your app idea? Don’t be discouraged if you do. This is the best way to see and know if that idea is making money. If your app idea is ranked in the top grossing, even better. Do you see less than 5 version of that app idea? Then you have a good shot in this market!
This is one of the ways that we get paid at RewardExpert. We educate our readers about the pros and cons of credit cards, why one card may be better than another, and the best ways to use your travel rewards to book your next free vacation. When you click our links and get approved, you get the same offer you would get from their website, and the bank sends us payment as a thank you for referring you to them.
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/ 😉

Basically, people looking to borrow money will make a listing on the site. Those borrowers are then placed into a category and given a “rating” based on their credit history and rate. You, as an investor, will contribute money to these loans and then be paid back at the predetermined rate of interest. Invest and see those monthly interest payments deposited into your account.

If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. This is true even if you aren’t a real estate professional in any intervening year. (For that year, the exception for real estate professionals won’t apply in determining whether your activity is subject to the passive activity rules.)
You’ll also want to include some sort of “Rate Me” system. This is where after the user has used your app, you give them a popup to rate your app. This allows your app to generate more ratings and reviews which help with the app store algorithm (ASO) ranking. Another popular tactic is to funnel positive feedback to your ratings and negative feedback to emailing you directly. Not only does this improve your overall rating, but it gives you quicker and more direct feedback from emails. Allowing you to respond to them instantly and help them resolve their issues.
And real estate does more than just track inflation – it throws off income (which is important to some people and useful to most). And while your underlying asset is appreciating, the income also grows as rents increase over time. And if you make smart and well-timed purchases, both rents and asset values can increase at well above the rate of inflation.
3. Travel Resulting From Rental Activity: Far too many passive income investors are not aware of the tax deductions that extend beyond the physical upkeep of a property. Having said that, it is entirely possible to deduct the amount of money you spend traveling for the sake of running and maintaining the property. Anywhere you drive for the sake of the rental, which includes visits to the property itself, can mount to travel expenses. Most notably, you can deduct the actual expenses incurred while traveling (gas, upkeep, repairs, etc). To clarify, travel expenses must be common, helpful, appropriate for your rental activity and — above all else — be solely for rental activities. Much like the repairs made on a property, deductions resulting from travel costs must be made in the same year they were incurred.
Passive income broadly refers to money you don't earn from actively engaging in a trade or business. By its broadest definition, passive income would include nearly all investment income, including interest, dividends, and capital gains. What most people are referring to when they talk about passive income is income that comes from what the IRS calls a passive activity.
If the amount you had at risk in an activity at the end of your tax year that began in 1978 was less than zero, you apply the preceding rule for the recapture of losses by substituting that negative amount for zero. For example, if your at-risk amount for that tax year was minus $50, you will recapture losses only when your at-risk amount goes below minus $50.
The PPACA Medicare tax is a dangerous tax IMHO. It is an entirely new kind of tax. It is small and in jeopardy of going away but I predict it won’t. If it goes away it won’t be for long and it will grow over time – like most taxes. 3.8% is a starting point. This one has the added political appeal of “taxing the rich” and “unearned income” that makes it more palatable to the electorate.

Investing in real estate: Investing in real estate offers more passive income cash potential - but more risk - than investing in stocks or bonds. You'll need substantial amounts of cash to invest in buying a home -- it usually takes 20% down to land a good home mortgage loan. But history shows that home prices usually rise over time, so buying home a for $200,000 and selling it for $250,000 over a five-year time period, for example, is a reasonable expectation when investing in real estate.


If you make the choice, it is binding for the tax year you make it and for any later year that you are a real estate professional. This is true even if you aren’t a real estate professional in any intervening year. (For that year, the exception for real estate professionals won’t apply in determining whether your activity is subject to the passive activity rules.)

The age old argument of total return versus income has been, incorrectly imo, categorized as an either or proposition. We are going to do both. Right now I have a lot cash in an on line money market. I also have investments in 2 passive Index funds in a taxable account. We then have substantial 401ks/IRA’s which we won’t touch for at least 10 years. My wife will continue to max out her sep and we will continue to invest in the index funds although with a smaller amount. We have already factored that in. I looked at how to cut into the monthly deficit. Here is what I observed.

However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.

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