Difference Between Passive Income And Portfolio Income
Portfolio income is derived from investments and includes capital gains interest dividends and royalties.
Difference between passive income and portfolio income. Various types of portfolio income are taxed differently. Portfolio income is not subject to medicare or social security taxes andportfolio losses can offset capital gains. While investment income is often considered passive income there may be a difference in how they re taxed. While passive and portfolio are income is generated via investments earned income is either employment w2 or self employment 1099 income.
Portfolio income is income from investments including dividends interest royalties and capital gains. Passive income streams allow you to make money without having to be there. I would say that portfolio income is a subset of passive income. Earned income is sometimes referred to as active income.
Passive income flows to you or your family whether you are sick or vacationing or dead.