115: 3 Types of 'Passive Income' - Only One Lets You Keep 96%

Jul 15, 2025

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👋 Managing Tech Millions 📈 your go-to source for building wealth with tech equity and managing the money that comes with it.

Join me for The WealthOps Way—our free live masterclass designed to help you stop guessing and start running your wealth like a business.

You’ll go from scattered to strategic as you craft your own Portfolio Thesis—the foundation of everything that follows.

👉 In just two sessions, you’ll:

* Clarify your long-term vision

* Define your next best investment move

* Build the system that turns wealth into freedom

When? 📆 July 30 and 31st at 7pm to 9pm (Central US)

Most people talk about passive income like it's a magic solution: do something once, and money just keeps rolling in. But the reality is a lot more complex — especially when it comes to how different types of income are taxed.

What many don't realize is that there’s a huge difference between portfolio income (like dividends or capital gains) and what the IRS truly considers passive income (like rental income). Misunderstanding these terms can lead to overpaying taxes — sometimes by tens of thousands of dollars.

In this breakdown, I walk through how the IRS classifies income, what truly counts as passive, and why some “passive income” strategies are actually active businesses in disguise — and taxed accordingly. That course that teaches you to build a digital product and call it passive? It might actually be a high-tax hustle if you’re not careful.

I also share some practical insights on how to build income streams that are not only sustainable but also tax-efficient. Whether you’re looking at rental properties, investments, digital products, or royalties, understanding how income is taxed is just as important as generating it.

By the end, you'll have a clear understanding of:

* What truly counts as passive income

* How portfolio income is taxed differently

* How to avoid common mistakes in income classification

* Legal strategies to reduce your tax burden with smarter planning

This is the kind of foundational knowledge that can transform how you approach financial freedom — not just how you earn, but how much you actually get to keep.

* What’s the difference between passive income and portfolio income?Passive income includes rentals and royalties; portfolio income includes dividends and capital gains.

* Is selling a course or digital product considered passive?Usually not. If you maintain it, provide support, or keep marketing, it’s considered active income.

* How can I lower taxes on my income?By structuring your income properly and knowing how the IRS classifies each type.

* Are rental properties always passive income?Often yes, but it depends on how involved you are — active management can change the classification.

* Why does income classification matter for taxes?Different types are taxed at different rates. Misclassification could lead to a higher tax bill.

Join me for The WealthOps Way—our free live masterclass designed to help you stop guessing and start running your wealth like a business.

You’ll go from scattered to strategic as you craft your own Portfolio Thesis—the foundation of everything that follows.

👉 In just two sessions, you’ll:

* Clarify your long-term vision

* Define your next best investment move

* Build the system that turns wealth into freedom

Spots are limited—and the clarity you’ll gain? Game-changing.

Let’s build your portfolio like it’s your next great company.

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Disclaimer: This newsletter is for informational purposes only and does not constitute financial or career advice. Always consult with qualified professionals before making any decisions based on the information provided.

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