ordinary income

(redirected from Regular Incomes)

Ordinary income

The income derived from the regular operating activities of a firm or individual.

Ordinary Income

In taxation, income from wages or salaries, interest, or commissions. Ordinary income is received in the short-term; for example, one usually receives a paycheck every two weeks or interest on a bond a few times per year. Ordinary income differs from capital gain, which is income from investment and is usually realized over a longer period of time. Most ordinary income is taxed at a higher rate than capital gain, so as to encourage long-term investment. In the United States, dividends were taxed as ordinary income, but this changed in 2003. One may think of ordinary income as income from one's job and/or standard business transactions.

ordinary income

Income that does not qualify for special tax treatment. Wages, dividends, and interest are ordinary income.

ordinary income

Income subject to full or ordinary taxation rates. Contrast with capital gains.
References in classic literature ?
Douglas says that no one can be considered as possessing a regular income. One of the richest land-owners might possibly accumulate, in a long industrious life, as much as 1000 pounds sterling; but should this happen, it would all be stowed away in some secret corner, for it is the custom of almost every family to have a jar or treasure-chest buried in the ground.
Although they are generous, none of them could hope to make a gift of $11,000 or several hundred thousand dollars from their regular incomes. However, when they consider their "net worth," including home equity, pension plans, and life insurance policies, their abilities to make a very substantial gift increase dramatically.
If charitable organizations and individuals might establish regular incomes for some of the destitute elderly, many of them still remained destitute, resented or ignored by their adult children, who were waiting for - or had already taken over - their inheritances.