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As I pointed in a comment I've written, books income are actually automatically earned, since the author doesn't need to promote his books (Amazon's upvote syst
by kahon65 4y ago
As I pointed in a comment I've written, books income are actually automatically earned, since the author doesn't need to promote his books (Amazon's upvote system, e.g.). (however: it's an hypothesis for the moment because he didn't communicate about that).
Labor to write his book is low labor, since he writes books <=100 pages, he enjoys that, and it is far less stressing than working for someone (employer/customer). In fact it makes him feeling happy and, perhaps, relaxed. However, the author would be welcome to clearly indicate weither or not this required labor is actually "low one" or not, because he didn't communicate about that.
Maintaining his books: the author doesn't communicate about that but maintenance operations on books seem low labor too, far less than code maintenance.
Those books incomes, I see them as passive(writting a book once, over a period of several months probably, then eventually getting money each month is as worth as investments, except that investments are done in few seconds with some money needed to be brought - for books written: no money is needed to be brought, but it takes months contrary to few seconds to be done). Moreover, they can be extended by bank investments or Bitcoin investments, extending their "passive"-side.
> PS: Sadly writing can pay off as much as giving you nothing (money wise).
Exact. But the author writes no books > 100 pages and he has even written a sentence about this.
PS: if we define "labor" by "spent money", then writting and publishing a book (and ebook) is also low labor since very few $$$ are required to be bring by the author, like computer science projects.
> Note that: bank investment need lots of money to be done. Writting books, no. Bank investment need a few seconds to be done. Writting books, several months. I think they are equivalent and, thus, are both ways to earn passive incomes.
("equivalence" from a money point of view and almost from a labor point of view, if we consider that bank investments's initial brought money is only due to labor, not inheritance, etc.)
- pjc50 4y ago> if we define "labor" by "spent money" And if my grandmother had wheels she'd be a wagon. This is obfuscating a useful distinction - labour is stuff you do, spending money in the hope of a return is investment. It's like trying to redefine landlordism as labour because you do occasionally have to do some work. > Moreover, they can be extended by bank investments or Bitcoin investments, extending their "passive"-side ??? The word everyone is looking for in regard to royalties is not passive or active but deferred income. Writing a book is labour, regardless of word games, and it produces a capital asset - intellectual property - that you can either sell all at once or over a period of time. > the author doesn't need to promote his books This is rarely true of books. It sounds like he's found an under-served niche. Once upon a time you didn't have to promote apps in the app store, either.
- kahon65 4y agoI was writting a long answer but finally, I decided to simply quote: > In the court's view, royalties are those items which constitute passive income, such as the compensation paid by a licensee to a licensor for the use of a Page 7 patented invention. https://www.irs.gov/pub/irs-tege/eotopicd89.pdf https://www.irs.gov/pub/irs-tege/eotopicd89.pdf Also, as you say, some royaltie are active incomes. But Passive royalties exist.
- Namari 4y agoI guess writing a book is "labor" but "royalties" out of it are passive income, I guess it's a mix of both. But Royalties cannot be achieved in that case without the Labor of writing the book
- emteycz 4y agoWell, and passive income from the stock market can't be achieved without the labor of picking the stocks...
- Namari 4y agoTrue but this is not as much work as writing a book, moreover it could turn out as a liability if the stocks go down.
- kahon65 4y agoSame for bank investments, except for inheritance (but someone had to work).
- junar 4y agoThis article is about books. Book royalties are generally considered self-employment income, not passive income, under the tax code. > However, if you hold an operating oil, gas, or mineral interest or are in business as a self-employed writer, inventor, artist, etc., report your income and expenses on Schedule C (Form 1040). https://irs.gov/publications/p525#en_US_2021_publink1000229288 https://irs.gov/publications/p525#en_US_2021_publink10002292...