passive income

(redirected from Interest income)

Passive income

Income (such as investment income) that does not come from active participation in a business. Specified by the U.S. tax code.

Passive Income

Income from a venture in which an individual does not directly participate. The most common types of passive income are rents and income from a limited partnership. Some analysts consider income derived from securities such as dividends and coupons to be passive income, while others put it into a separate category as portfolio income. Passive income is taxable, but it is often treated differently than active income.

passive income (loss)

A special category of income (loss) derived from passive activities, including real estate, limited partnerships, and other forms of tax-advantaged investments. Investors are limited in their deduction of passive losses against active sources of income, such as wages, salaries, and pension income.

Passive income.

You collect passive income from certain businesses in which you aren't an active participant.

They may include limited partnerships where you're a limited partner, rental real estate that you own but don't manage, and other operations in which you're an investor but have a hands-off relationship.

For example, if you invest as a limited partner, you realize passive income or passive losses because you don't participate in operating the partnership and have no voice in the decisions the general partner makes.

In some cases, income from renting real estate is also considered passive income. On the other hand, any money you earn or realize on your investment portfolio of stocks, bonds, and mutual funds is considered active income. That includes dividends, interest, annuity payments, capital gains, and royalties.

Any losses you realize from selling investments in your portfolio are similarly active losses.

Internal Revenue Service (IRS) regulations differentiate between passive and active income (and losses) and allow you to offset passive income only with passive losses and active income with active losses.

passive income

See passive activity income.

Passive Income

Passive income is income from business activities in which the taxpayer does not materially participate, and most rental activities. See also Material Participation and Portfolio Income.
References in periodicals archive ?
Interest income on loans and receivables went up 12.7 percent to P10.64 billion from P9.44 billion, while interest earnings on trading and investment securities fell 20.4 percent to P1.75 billion from P2.2 billion.
The decrease was due to lower net interest income and higher non-interest expense, partially offset by higher non-interest income.
Net interest income increased 9% YoY and 2% QoQ to stand at SAR 961 million in 1Q2014, broadly in line with our forecast.
According to the Annual Report on National Accounts, the household sector received a healthy [yen] 12 trillion in net interest income in 1992.
7872, which requires the parties to impute interest income and expense on below-market-rate loans and treat the imputed interest as a gift.
Swedish home loans company SBAB Group reported on Thursday (26 August) a net operating income of SEK360m on interest income of SEK2.98bn for the financial period January-June 2004.
Net interest income after provision for credit losses for the first quarter was USD3.3m, increased 21% from the net interest income after provision for credit losses of USD2.7m in the same period of 2018.
"We generated net interest income of $19.6 million and a portfolio net interest margin of 255 basis points for the quarter ended September 30, 2018 as compared to net interest income of $17.5 million and a portfolio net interest margin of 239 basis points for the quarter ended June 30, 2018.
For the three months ended June 30, 2018, net interest income increased $183,000, or 11.6%, to $1.8 million from $1.6 million for the same period in 2017.
Net interest income after provision for loan losses increased by USD 707,000, or 12.96% to USD 6,162,000 for the year ended December 31, 2016, compared to USD 5,455,000 for the year ended December 31, 2015.
1.1502-13(c)(6)(i) exempts a lending member's interest income on the borrowing.
The increase was attributed to higher levels of net interest income and USD120,000 gain recognised on the sale of bank premises during the first quarter.