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Re:I earned $160k in passive income from writing non-fiction... by pjc50 on Thursday April 28, 2022 @04:58AM (#31190208)
> 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.

Re:I earned $160k in passive income from writing non-fiction... by kahon65 on Thursday April 28, 2022 @05:15AM (#31190311)
I 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

Also, as you say, some royaltie are active incomes. But Passive royalties exist.

Re:I earned $160k in passive income from writing non-fiction... by junar on Thursday April 28, 2022 @08:04PM (#31199758)
This 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_publink10002292...

Re:I earned $160k in passive income from writing non-fiction... by Namari on Thursday April 28, 2022 @05:25AM (#31190398)
I 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
Re:I earned $160k in passive income from writing non-fiction... by emteycz on Thursday April 28, 2022 @05:40AM (#31190507)
Well, and passive income from the stock market can't be achieved without the labor of picking the stocks...
Re:I earned $160k in passive income from writing non-fiction... by Namari on Thursday April 28, 2022 @07:18AM (#31191157)
True but this is not as much work as writing a book, moreover it could turn out as a liability if the stocks go down.
Re:I earned $160k in passive income from writing non-fiction... by kahon65 on Thursday April 28, 2022 @05:54AM (#31190626)
Same for bank investments, except for inheritance (but someone had to work).
Re:I earned $160k in passive income from writing non-fiction... by bryanrasmussen on Thursday April 28, 2022 @07:19AM (#31191171)
> labour is stuff you do,

by this measure there may be no such thing as passive income, or at least very few instances of it in this world since just about everything requires you to do something to realize a profit from it. I guess having a rich relative you never knew die and leave you everything is passive, as long as you don't have to go to the will reading or anything.