What is the tax difference between w2 income and passive income from real estate?
From my understanding if I make 100k as a single person, I pay 28% federal tax, plus state, plus medicare etc with a W2. What about if I make 100k in passive income from several real estate properties. How much taxes will I pay? What is the difference?
Thank you! Basically, what is the percentage difference between the two?
Thank you for your answers.
WHAT IS THE DIFFERENCE IN % BETWEEN TWO INCOMES AT $100,000 per year?
Income reported on a W-2 is earned income because it is received in exchange for your service. Similarly, profits from operating a business are earned income. Passive, or unearned income, is income generated from capital like rents or interest.
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