Residual Income

The amount of income that an individual has after all personal debts, including the mortgage, have been paid. This calculation is usually made on a monthly basis, after the monthly bills and debts are paid. Also, when a mortgage has been paid off in its entirety, the income that individual had been putting towards their mortgage becomes residual income.

A residual income is NOT TAXABLE it should flow directly from your source(s) of BUSINESS INVESTMENT(s) into your bank account(s), CHECK(s) or BANK DRAFT CHECK(s) written out to you.

A residual income may come from different sources or venues including raising funds, foundations, organizations or non-profit organizations etc.

This is a straight forward Income Statement of a Corporate Business

INCOME STATEMENT FOR AN ARBITRARY COMPANY INCOME STATEMENT FOR AN ARBITRARY COMPANY
Corporate Taxes – FOR THE YEAR ENDING DECEMBER 31,20XX in USD
TOTAL REVENUE 1.00E+11 NET MARGIN 65% (NET PROFIT / TOTAL REVENUE) * 100%
PROFIT MARGIN 98% (TOTAL REVENUE – OPERATING EXPENSES) / TOTAL REVENUE) *100%
BUSINESS DEALS (INVESTMENTS) 4.00E+10 -4.00E+10 same as GROSS MARGIN
GROSS PROFIT 6.00E+10 OPERATING MARGIN 2% (OPERATING EARNINGS / REVENUE) *100%
OPERATING EXPENSES
Salaries -1.00E+10 1.00E+10 In situation where Salaries were not paid out, then it should indicate as +ve under column C
SUBSIDIARY OPERATING EXPENSES
Building Management – Leasing, cleaning etc. 3.00E+09
Utilities 3.00E+09
Depreciation 2.00E+09
SUMMATION OF SUB OPERATING EXPENSES 8.00E+09 -8.00E+09
TOTAL OPERATING EXPENSES -2.00E+09 2.00E+09
INTEREST EXPENSES (standard of living) = 3% 3.00E+09
TAXES (2%) -2.00E+09 CORPORATE TAXES 2%
NET PROFIT 6.50E+10

Corp TaxesCorporate Taxes

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