Investopedia

Nonpassive Income And Losses

Filed Under »
Dictionary Says

Definition of 'Nonpassive Income And Losses'

Any income or losses that cannot be classified as passive. Nonpassive income includes any type of active income, such as wages, business income or investment income. Nonpassive losses include losses incurred in the active management of a business. Nonpassive income and losses are usually declarable and deductible in the year incurred.

Investopedia Says

Investopedia explains 'Nonpassive Income And Losses'

Nonpassive income and losses cannot be offset with passive losses or income. For example, wages or self-employment income cannot be offset by losses from partnerships or other passive activities. Conversely, nonpassive losses cannot be offset by passive income from partnerships or other sources of income in which the taxpayer is not a material participant.

Articles Of Interest

  1. Increase Your Disposable Income

    Here are four quick and easy ways to up your spending money.
  2. Choosing The Best Disability Insurance

    Social Security benefits can be hard to collect. Find out why you need disability insurance to protect your income, and learn how to choose the right policy for you.
  3. Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  4. 3 Simple Steps To Building Wealth

    Getting richer is easier if you take it one step at a time.
  5. There Are New REITs On The Horizon

    For investors, the surge in new REIT activity is providing some pretty interesting dividend opportunities.
  6. 5 ETFs Flaws You Shouldn't Overlook

    Despite their popularity, exchange traded funds have some drawbacks that investors should know about.
  7. How are capital gains and dividends taxed differently?

    The U.S. tax code gives similar treatment to dividends and capital gains, although this will change slightly in 2013. Currently, ordinary dividends and short-term capital gains those on assets ...
  8. Dividend Facts You May Not Know

    Discover the issues that complicate these payouts for investors.
  9. Simplify Your Portfolio

    Faced with an overabundance of choices, many investors forget to stick to the basics.
  10. Who Does The Current Tax Code Benefit?

    Are the non-workers benefiting from the current tax code in any way or is it the wealthy who are still getting the big breaks?
comments powered by Disqus
Marketplace
Hot Definitions
  1. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  2. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  3. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  4. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  5. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  6. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
Trading Center
Array ( )
taggroups(for debug only):
Array ( [0] => Taxes [1] => Personal Finance [2] => SEG (Head Of Households) [3] => SEG (Head Of Households:Topic-Taxes) [4] => SEG (Head Of Households:TaxType-Personal) [5] => SEG (Investors) ) time:8ms