Is your passive income taxable?

[Starmix]

Do you have a passive income? Whatever it is do you pay tax or evade paying it? I have a passive income from the rent of my one hectare coco farm which I inherited from my parents.

It is rented annually by a wealthy farmer, friend of my dad. He is the one who helps me to tax my real property. It's my passive income and an asset. I have to take care of it.

Do you tax your passive income?

 

[Nomad]

Yes, it is taxable. However, you pay lesser taxes for your passive income compared to your active income.

 

[Starmix]

Yes, it is taxable. However, you pay lesser taxes for your passive income compared to your active income.

Yes, you are right; we pay less in our passive income compared to our active income which is why, I always prepare or set aside money for tax payments. It is hard to fight the tax laws. They surcharged us

 

[Suba]

In my country, passive income is also taxed, such as interest tax, lottery/sweepstakes winnings, inheritance that has not been divided will also be taxed, but if it has been divided, it is not taxed.

 

[Starmix]

We should not evade tax. It ruins our reputation. That is our duty as a citizen in our country. It's through taxes that our country is able to build bridges, roads, public schools, hospitals, health care and more. I am paying income tax, and real property tax.

 

[Augusta]

Passive income, as an acquired income, so it is taxable. Examples of passive income include rental income and business activities that being passive income

 

[Starmix]

Indeed, passive income is taxable. Just imagine the Value Added Tax to our goods we buy in store, taxed. How much more to our passive income. There's no choice but to oblige to the law.

 

[Augusta]

Passive income is taxed on income generated from interest, rent, dividends and other money made outside of employment or contract work.

 

[Starmix]

Yes, passive income is taxable. We earn from it , therefore we have to share what we earn with the government. It is crucial for a country's economy without taxes.