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What is Passive Income?

By Catherine BrockUpdated Jun 11, 2025 at 2:08 AM

Key Points

  • Passive income allows earning without active work but requires initial investment of time and money.
  • Investing in assets like dividend stocks or rental properties can generate ongoing passive income.
  • Tax rules for passive income vary and may include liabilities on dividends, rentals, and business earnings.

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