The income that an entity derives from dividends, interest, rent, royalties, or broadly any source of income to which it applies no, or very minimal, labor/ management input. A passive income is earned or acquired in an automatic manner with minimal efforts. Other sources of passive income include earnings from limited partnerships and other enterprises in which an entity is not “actively” engaged.
Passive income (the opposite of active income) is a subcategory of tainted income.
