- 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."
cash flow, gains, earnings
Non-passive Income, Non passive income
Related Terms and Acronyms
- Earned Income — Definition,
- 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.
- Mixed-income Housing — Definition,
- A neighbourhood whose residents earn widely varying wages and salaries.
- Net Income (NI) — Acronym, Very Important,
- The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
- Ordinary Income — Definition,
- Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
- Passive Activity — Definition,
- An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
- Passive Income — Definition,
- Income coming in on a regular basis, with little or no maintenance.
- Passive Loss — Definition,
- 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.
- Personal Disposable Income — Definition,
- Personal income minus personal income tax payments. Also called "take-home pay."
- Recognized Gain or Loss — Definition,
- 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.
- Seasonal Unemployment — Definition,
- 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.