Earned Income Vs Passive Income
![Different Types Of Income Income Funds Rental Income Passive Income](https://i.pinimg.com/originals/a0/7d/26/a07d26d34586f289f9e4be353e0376ac.png)
Client earns 120 000 through earned income e g.
Earned income vs passive income. A major difference in passive income compared to earned income is that passive income has more flexibility in tax treatment and generally lower tax liability. The total basis of retirement contribution is 120 000 not 170 000. The percentage of income contributed should be only based on earned income. If an investor has a real estate property that generates 50 000 in passive income they can use a 1031 exchange to legally defer taxes and then buy another property.
Passive income vs earned income published on july 29 2020 latest vids about people make money income opportunities creating passive income sources of passive income and passive income vs non passive income passive income vs earned income. W2 k1 or possible a combination of both. While passive and portfolio are income is generated via investments earned income is either employment w2 or self employment 1099 income.