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Investment Income |
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Investment income Investment Income The income one derives from capital gains, dividends, and other activities related to the purchase and sale of securities. This differs from wages and salary primarily in that one does not need to work for investment income. One can manage one's investments oneself, or one can hire a money manager to do it. Both individuals and companies can have investment income; indeed, a publicly-traded company must list its investment income on its balance sheet. Investment income is often taxed differently from other income. See also: Capital gains tax. Investment income. Investment income -- sometimes called unearned income -- is the money that you collect from your investments. It may include stock dividends, mutual fund distributions, and interest from CDs, interest-bearing bank accounts, bonds, and other debt instruments. You may also have rental income from real estate or other assets you own for investment purposes. Capital gains you realize from selling investments for more than you paid to acquire them may also be considered investment income. Your net investment income is what you have left over after you subtract your investment expenses, such as fees and commissions. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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