Friday, March 26, 2010

Active and Passive income

Active income - Income from salary, wages, tips, commissions, and activities in which the taxpayer materially participates.

Passive income - Income from rental activity, limited business interests, or other activities in which the investor does not materially participate.



Sunday, March 21, 2010

Seafarers life

What people say when they hear the word Seaman or Seafarer? A person or individual working onboard ship to earn money to support family. Is it a profession? Well, I say yes a profession indeed. To leave family is quite hard specially having small children and to stay and work to ship that last usually nine months depending on the contract signed. For a long time working onboard the ship and to stay away from family is quite difficult but, in a positive side is best because it helps a lot to help the economy of our country as they say, by sending monthly allotment which is requirement by the POEA.

Thinking, I'm earning now an "active income" while working onboard, what if my contract is complete and the Company manned this vessel will sent me home since as per Maritime Labor Convention the ship's crew can extend only until 1 year maximum more than that depends to the Agency the crew can sign another contract. Wow! another contract? What way can a Seafarer do to earn what they call "passive income"? Anyone can help? Please suggest.