4 Steps to Declaring your Passive Income to the IRS

Passive income is defined as something you earn on a regular basis through little or no effort. Once you’ve got your income stream set up the way you want it, you will be able to essentially receive the fruits of your labor. Since you are earning money, you have to declare your passive income. Just like with active income sources such as a salary and business revenue, passive income is also taxable by the IRS. However, passive income is treated a little differently from your sources of active income. This article will discuss the differences in the treatment. It will also be a step-by-step guide on how you can report your passive income to the IRS.