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%|
|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+06|
|SUMMATION OF SUB OPERATING EXPENSES||8.00E+06||-8.00E+06|
|TOTAL OPERATING EXPENSES||-2.00E+06||2.00E+06|
|INTEREST EXPENSES (standard of living) = 3%||3.00E+06|
|TAXES (20%)||-2.00E+06||CORPORATE TAXES||20%|