Active Income

Importance: 0.57

Is a company: no

Is a proper noun: no


  • cash flow
  • earnings
  • gains

Alternate Spellings

  • Non-passive Income
  • Non passive income

Definition of Active Income

  1. Active income, such as wages, tips and profits from your business that you materially participate in, and portfolio income, such as interest and dividends. Generally, you cannot offset active income with passive losses. See also "Non-passive Income."

Related Terms and Acronyms

  • Net Income (NI) Bank, Very Important,
    • The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
  • Passive Loss Bank,
    • Loss from a passive activity. Passive loss rules limit the amount of passive loss you can deduct to the total of your other income from passive activities.
  • Ordinary Income Bank,
    • Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
  • Personal Disposable Income Bank,
    • Personal income minus personal income tax payments. Also called "take-home pay."
  • Recognized Gain or Loss Bank,
    • The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
  • Mixed-income Housing Bank,
    • A neighbourhood whose residents earn widely varying wages and salaries.
  • Passive Income Bank,
    • Income coming in on a regular basis, with little or no maintenance.
  • Earned Income Bank,
    • Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • Seasonal Unemployment Bank,
    • The loss of jobs due to changes in the climate and other conditions. Forestry, fishing and construction are affected by climate, while retailing is affected by seasons and holidays. For instance, at Christmas, retail employment is higher than in January.
  • Passive Activity Bank,
    • An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
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