@curious_panda wrote:
I like to generate some passive income....
Income from a passive activity (passive income), for federal income tax purposes is not the opposite of "ordinary", "active", or "earned" income; it is the opposite of nonpassive income. Passive income does not include income such as interest, dividends, capital gain, and the like.
In order to generate passive income, you would generally have to either own rental property that generates a net profit or conduct a business in which you do not materially participate. Selling goods online would typically involve material participation on your part.
