Active Income

AAA

DEFINITION of 'Active Income'

Income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation.

INVESTOPEDIA EXPLAINS 'Active Income'

There are three main categories of income: active income, passive income and portfolio income. These categories of income are important because losses in passive income generally cannot be offset against active or portfolio income.

RELATED TERMS
  1. Income

    Money that an individual or business receives in exchange for ...
  2. Taxable Income

    The amount of income that is used to calculate an individual's ...
  3. Passive Income

    Earnings an individual derives from a rental property, limited ...
  4. Passive Activity

    Activity in which the taxpayer did not materially participate ...
  5. Portfolio Income

    Income from investments, dividends, interest, royalties and capital ...
  6. Social Security

    A United States federal program of social insurance and benefits ...
Related Articles
  1. Options & Futures

    Choosing The Best Disability Insurance ...

  2. Home & Auto

    How do real estate agents get paid?

  3. Home & Auto

    Why do real estate agents fail?

  4. Personal Finance

    Do real estate agents work on weekends?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center