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+06
Utilities	3.00E+06
Depreciation	2.00E+04
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%
NET PROFIT		6.50E+06