Ordinary Income

United States Tax Concept of Ordinary Income

Income such as wages, interest, dividends, and net income from a business, that does not qualify to be taxed as a capital gain.

Concept of Ordinary Income in the context of Real Property

A short definition of Ordinary Income: A term having meaning only in relation to income tax. The regular graduated scale of tax is paid on income which is called “ordinary”, as opposed to capital gains or any other income taxed differently.

Concept of Ordinary Income in the context of Real Property

A short definition of Ordinary Income: A term having meaning only in relation to income tax. The regular graduated scale of tax is paid on income which is called “ordinary”, as opposed to capital gains or any other income taxed differently.