Definition of «investment income»

Investment income refers to the earnings generated from investing money in various assets such as stocks, bonds, mutual funds or real estate. This type of income is typically earned through interest payments on loans made to others (such as bondholders), dividends paid by corporations, and capital gains realized upon selling an asset for a profit. Investment income can be received regularly, such as in the form of monthly or quarterly dividend payments, or it may come only when the investment is sold or matures. It's important to note that investment income does not include wages or salary earned from employment.

Sentences with «investment income»

  • For example, if you have $ 3,000 in margin interest but net investment income of only $ 1,000, you can only deduct the $ 1,000 in investment interest in the current year. (turbotax.intuit.com)
  • The government also recently introduced a number of income taxes, including a 1 % withholding tax on earnings of investments incomes of ordinary citizens. (ghanapoliticsonline.com)
  • If you invested that same $ 5,000 outside an RRSP, every year you'd be taxed on investment income earned by that capital. (business.financialpost.com)
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