Sentences with phrase «ordinary income for tax purposes»

From there, your net income gets treated as ordinary income for tax purposes.

Not exact matches

Most types of income are taxed at ordinary tax rates for federal and state purposes but are not subject to FICA taxes.

For tax - exempt municipal OID bonds, this income is not subject to the ordinary income tax, although it is required to be reported for informational purposes in the same manner as other tax - exempt bond intereFor tax - exempt municipal OID bonds, this income is not subject to the ordinary income tax, although it is required to be reported for informational purposes in the same manner as other tax - exempt bond interefor informational purposes in the same manner as other tax - exempt bond interest.

Any distributions resulting from such gains will be considered ordinary income for federal income tax purposes.

When 529 funds are used for these qualified purposes, there is no federal income tax on investment gains (no capital gains tax, ordinary income tax, or Medicare surtax).

Any investment returns grow tax - deferred and once you reach age 59 1/2 65, you can withdraw the funds for any purpose (subject to ordinary income tax), just like a traditional IRA.

For example, under Section 1231 of the U.S. Internal Revenue Code, the sale at a loss of such assets used in a trade or business, usually gives rise to an ordinary loss for income tax purposFor example, under Section 1231 of the U.S. Internal Revenue Code, the sale at a loss of such assets used in a trade or business, usually gives rise to an ordinary loss for income tax purposfor income tax purposes.

For tax purposes, dividends are allocated to ordinary income, capital gains, and the return of capital.

Thrift Savings Plan payments are taxable as ordinary income for Federal income tax purposes for the year in which they are disbursed.

For REITs, dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different raFor REITs, dividend distributions for tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different rafor tax purposes are allocated to ordinary income, capital gains and return of capital, each of which may be taxed at a different rate.

Distributions may include amounts characterized for federal income tax purposes as ordinary dividends (including qualified dividends), capital gain distributions and nondividend distributions, also known as return of capital distributions.

It's considered portfolio income for tax purposes and is taxed at ordinary rates.