3 Types Of Income By Mikey Taylor

In this video, we’re going to be covering the three different types of income, how they’re each taxed, and how all of us need to be participating in all three types of income.

Earned Income - If you make a salary, tips, bonuses, or are self-employed this all falls under earned income. You’re exchanging time for money. This is how the majority of people make their money and the worst part is that it’s taxed at the highest bracket.   

Portfolio Income or Capital Gains -This applies to stocks, bonds, precious metals, real estate... If you sell at a higher price than you bought, the profits are taxed as capital gains. You can be taxed for short term capital gains or long term capital gains. Short Term Capital Gains is if you held something for less than a year and Long Term Capital Gains is holding an investment for one year and one day. Long term capital gains is taxed at a lower rate than earned income!

Passive Income - Passive income is the income you make from owning assets. This could come from the income of a rental property or income from a limited partnership where you don’t have an active role. You primarily make this income while not having an active role. There’s no exchange of time for money.

The rich really like Passive Income because you don’t exchange time for money and you’re able to really bring taxes down!

The three incomes are earned income, portfolio income, and passive income. All three are very important ways to make income but if you wanna keep more of your money, it’s done in portfolio and passive income.

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Видео 3 Types Of Income By Mikey Taylor канала Commune Capital