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 ?
While total operating income grew 8 per cent, largely driven by higher net-interest income and non-interest income net interest income increased 5 per cent year on year.
These negatives more than offset a 54 per cent increase in net interest income to N7.
Charitable Remainder Annuity Trusts: Income and Deductions, by Size of End-of-Year Book Value of Total Assets, Filing Year 2010 [All figures are estimates based on samples-- money amounts are in thousands of dollars] Size of end-of-year book value of total assets Under $500,000 $500,000 under Item Total [1] $1,000,000 (1) (2) (3) Number of returns 16,937 13,664 1,855 Total net income -82,379 -64,845 -28,567 Net ordinary income [2] 152,875 29,770 25,643 Total ordinary income 207,041 49,694 34,731 Interest income 65,468 14,409 11,296 Ordinary dividends and business income (loss) 120,286 34,114 21,935 Rents, royalties, partnerships, other estates and trusts, etc.
The redirection of households' interest income supported Japan's corporate restructuring and helped banks to write down and write off their glut of bad loans.
7872, which requires the parties to impute interest income and expense on below-market-rate loans and treat the imputed interest as a gift.
This approach--continuing to adjust the basis of the hedged asset without requiting recalculation of the effective yield and reported interest income/expense--allows companies to change what otherwise would have been recorded as interest income (varying with changes in the benchmark interest rate) into gain or loss on disposition of the asset.
The problem is, the issuers need the interest income to finance all the incentives.
When interest income rises as a share of national income the rich get richer.
Question: Does the underlying unitary standard apply equally to dividends, interest income, and capital gains?
At all commercial banks, the lowest level of loss provisions in five years, in conjunction with higher net interest income, contributed to a return on assets of 0.
1) The tax equivalent adjustment to net interest income recognizes the
According to the Annual Report on National Accounts, the household sector received a healthy [yen] 12 trillion in net interest income in 1992.