Passive income such as interest, dividends, royalties, rent from real property, or the sale of an asset that has been held to produce passive income over time are not subject to UBIT. 

If you have filed schedule E (rents and royalties) for 2 years, then that is your track record for being a landlord.

If you're a songwriter (like me), you get paid royalties if anyone plays or records your songs.

I've learned the best answer to your question is to have MULTIPLE STREAMS of INCOME, whether it be 1099, passive partnerships, W-2, rental income, a small business or royalty income.

@Herb MitchellActually, there are tax considerations within an IRA.Passive income from rental income, interest, dividends and royalties are wholly tax exempt to an IRA.When an IRA (or other tax-exempt entity) engages in a trade or business on a regular or repeated basis, and is therefore competing with taxpaying business,  there is a tax known as UBIT that is designed to level the playing field.  

Licence of the intellectual property rightsa.This clause will apply if a Customer has purchased a Design from the Ready-made Design Store where the Design was sold to the Customer for use on a non-exclusive basis, pursuant to which the Customer was to be granted a non-exclusive licence to use the Intellectual Property Rights in the Design.b.If this clause applies, then upon receipt of payment for the Transferred Design in the form of 99designs Dollar Credits (pursuant to the terms of the Services Agreement), the Designer hereby grants to the Customer a non-exclusive, royalty free, worldwide, irrevocable, perpetual licence to:i.use, reproduce and distribute the Transferred Design; andii.sell, assign and/or transfer the rights licensed to the Customer in the Transferred Design to any person.c.The licence rights granted in clause 4(b) are personal to the Customer and may not be sub-licensed by the Customer to any person.

I own a business method patent on this strategy and every time you do it, you owe me a royalty/licensing fee.

One of the principles of the founding fathers was to eliminate social ranking and privilege, no royalty class.

They treated me like royalty, and even called me up a week later to ask how things were going.That credit union will have my business for life.Customers have choices nowadays.  

We currently have holdings of the private placement security nature and have gotten an opportunity to work with a bit of an unorthodox real estate deal that offers royalty style payments.