Bought a truck...but want out of trucking?

Okay, that makes sense. As an example, if I leased 360 acres of rice ground to a tenant farmer and took a certain percent of the gross or a set figure per acre, collected my money with no other active interest in the crop, it could be considered passive income ?
Say I leased out eighty acres of almonds with the agreement that I'd do the irrigating and pesticide work if my tenant would do the ground work, the pruning, and take care of harvest and harvest related costs. Since I was physically involved in part of the production what part of my income could be classed as passive? Any? A percentage in keeping with the gross amount? So much an acre with the costs per acre noted ?
If I rent a couple of bulls to a neighbor and take my return in calves are the calves considered passive income? At what point in their growth cycle does the value accrue? Is the valuation different if I keep the calves for eventual replacement heifers? Which one of these choices, if any, is considered passive income?
There's also some tax concerns here. With passive income in any of the above scenarios it might be difficult to assign costs and deductions.
The lady that does our taxes and our bookkeeping suggested these questions after she read your post. She doesn't have a very high opinion of passive income unless it involves millions of dollars constantly in motion. There's no danger of that in my case.
She also cautioned that well meaning but terribly uninformed self proclaimed experts can cost a lot of money and misery.

 

The first example, definitely.

The second, maybe? I'd say overall, yes, as to me "passive income " is income from a source that doesn't require a significant amount of your weekly time/effort.

The bulls I would say, yes it is passive income provided you're not taking care of the animals. If you are, I'd call it a side hustle.

As to tax implications - that's out of my wheelhouse. Farms and farm taxes is something I haven't read up on except to know it's a bad risk investment for me. I'd have to either borrow too much or put in a lot of time, and there are better ways for me. I do know it gets complicated in a hurry with rented lands, and I have no clue on livestock taxes. Heck, for all I know you might need to pay capital gains tax on the calves. In general, passive income would be classified as non qualified dividends and be subject to general income tax laws. The main benefit to passive over generated income is that it's not subject to FICA.

But all that is neither here nor there. The idea is to create income streams that do not require large amounts of a person's time so that person can spend it pursuing interests of their choosing.

 

Okay, sounds like you dodged a bullet, and I'm sorry to hear your opinions on the country many died for. America has always been the land of the rich, but there are ways around that, what is unique about America and quite frankly, this is nobodies fault but your own. Of course the "salesperson" is going to try their darndest to sell you a truck, that's what they do, and make a nice living bamboozling people like you. I'm glad you got out of it, and good luck finding a better place than the good old USA. People don't like me because I tell it like it is. but would never call the USA a crap hole.

 

Sirscrapntruckalot -

 

This is the key, just start with many millions and you too can be a millionaire with money to burn...