Earnings from a rental property, limited partnership, or other business venture in which a person is not actively involved. As is the case with active income, passive income is generally taxable, though it is treated differently by the IRS. Colloquially, passive income has been used to denote a system in which money is being earned regularly with little to no effort by the person making the money. Examples of passive income generators are high-yield savings accounts, owning rental properties, being a silent partner, and real estate investing in general.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Passive Income.