Portfolio Income


DEFINITION of 'Portfolio Income'

Income from investments, dividends, interest, royalties and capital gains. Portfolio income does not come from passive investments and is not earned through normal business activity. Typically, income from interest on money that has been loaned does not count as portfolio income.

BREAKING DOWN 'Portfolio Income'

The three main categories of income are 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.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Passive Income

    Earnings an individual derives from a rental property, limited ...
  3. Dividend

    A distribution of a portion of a company's earnings, decided ...
  4. Income

    Money that an individual or business receives in exchange for ...
  5. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  6. Active Income

    Income for which services have been performed. This includes ...
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