How to Grow Passive Income & Pay Little-to-No Tax

Have you ever wondered how the wealthy pay so little in taxes relative to their income?  In fact, you may wonder do rich people even pay taxes?

What is Passive Income?

Passive income is money earned as a result of little effort and you can make money while you sleep, go on vacation, fall ill, or any other circumstance which would bar you from actively earning income.

Is Passive Income Taxable?

In a word: yes.  As with active (earned) income, passive income usually qualifies as taxable. However, passive income can receive different treatment from the IRS, as discussed more below.

How to Pay Less Under Passive Income Tax Rates  (LT Capital Gains)

Purchase a dividend-paying stock through a free stock trading platform like Webull and hold on while the payments hit your brokerage account. And if you see the upper end of the 0% tax range shown above, you’ll see just how to pay zero tax on your income: make it passive!

What is a Passive Activity?

Naturally, passive income comes from passive activities.  Non-passive activities (otherwise called active) are businesses in which the taxpayer works on a regular, continuous and substantial basis.

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