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.

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