Canadian Financial, Real Estate and Mortgage Glossary

Active Income

Definition of active income

Related Terms and Acronyms:

• earned income   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   A neighbourhood whose residents earn widely varying wages and salaries.
• net income (NI)   The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
• ordinary income   Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
• passive activity   An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
• passive income   Income coming in on a regular basis, with little or no maintenance.
• passive loss   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   Personal income minus personal income tax payments. Also called "take-home pay."
• recognized gain or loss   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   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.