passive income

(redirected from Passive Gain)

Passive income

Income (such as investment income) that does not come from active participation in a business. Specified by the U.S. tax code.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

passive income

See passive activity income.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
The ECOTECT simulation produce many outputs on thermal analysis, such as hourly temperature profile, hourly heat gains and losses, monthly loads/discomfort, passive adaptively index, temperature distribution, fabric gains/indirect solar, temperature/gains comparisons and passive gain breakdown graph.
Added to that, it was just a passive gain. It was the resultant difference between the accumulated first two days of gains of the market equivalent to 204.39 points, less its trading losses in the remaining three days of the week of 156.0 points.
In the past, some taxpayers sought to characterize their activities as passive in order to generate passive gain and income to be sheltered by passive losses.
But if that rather passive gain was the only advantage, then people wouldn't be getting quite so excited about it.
Passive gain is the heat from daily activity, given off by people cooking, using the shower, making toast and boiling the kettle.
In addition to high insulation levels and high-performance glass, "green" architecture uses passive gain coupled with a high building thermal mass for storage.
In Figure 7c, the laser is mode-locked using only passive gain modulation with a saturable absorber.
D has a net passive gain of $3,500 resulting from the disposition of property A, computed as shown in Exhibit 1.
Interest expense incurred by an S corporation is passed through to shareholders as --trade or business expense (reduces the corporation's nonseparately stated income on page 1 of Form 1120S); --investment expense (passes through as a separately stated item and is subject to limitation at the shareholder level); --rental expense or as a component of any other passive gain or loss (reduces passive activity income from rental or other activity); and --other interest expense (passes through as a separately stated item; shareholder treatment is determined by reference to how the loan proceeds were used).
If there are no self rentals for the tax year of the sale, it appears that the entire gain is considered a passive gain, not subject to recharacterization.
Concrete mass is utilized as a heat sink both for passive gains and for distribution of active solar thermal energy.
* Less than 50% of their weighted average assets are held for the production of passive income (such as dividends, interest, nonactive rents and royalties, annuities, and passive gains).