 TITLE: What Is Passive Income? CONTENT: Is Passive Income Taxable?\n--------------------------\nLike nearly every type of income, passive income is taxable. Exactly how it is taxed depends on a variety of factors. Investment income, for example, may be calculated and taxed differently from passive business income, property rental proceeds or cash back credit card rewards.\nThe most important takeaway now: Find out what your potential tax liability is before you pursue—and especially before you spend—any passive income. Since there are no automatic payroll deductions associated with this type of income, you want to know in advance how much of your earnings you should set aside for taxes and what documentation you will need at filing time. END