If you have assets, do they support monthly passive income? Or does it depend on what it is? I read that if you have assets that build capital, then your receiving income that is not taxed because its coming from your assets.
Do you receive passive income monthly if you have stocks because its an asset? Or you only receive income when you sell it?
2007-09-28 15:39:51 · 1 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
You can receive income from investments like stocks and bonds & that is called passive activity because the investment is generating the income , you are not showintg up at a job and working for it .
Income comes from % payments , dividends and if you sell it for more than you paid (some stocks drop in value ) .
False information is that passive income is not taxed .
Passive income IS taxed , the % and dividends are reported on Schedule B , any gains from selling are on Schedule D .
Brokers and banks report that % , dividends etc to the IRS just like employers report wages .
Trying to 'not list it' will end up with a nice IRS audit then it is life in hell thereafter .
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2007-09-28 15:47:03 · answer #1 · answered by kate 7 · 1⤊ 0⤋