Sentences with phrase «produce ordinary income»

Dan also notes that Annaly Capital (NYSE: NLY), American Capital Agency (NASDAQ: AGNC), and other real - estate investment trusts often produce ordinary income because of their status as pass - through entities.

Of course, if the other investment alternatives would produce ordinary income, the effect of such ordinary income would also have to be taken into account in the above formula to determine the after - tax yield on both investments.

Thus, they produce ordinary income to individuals and businesses alike.

Is this an investment account that produces ordinary income?

Not exact matches

In general, the effect of the election is to slightly decrease the rate at which the market discount is deemed to accrue, which will generally produce a beneficial result for the bondholder by reducing the amount of ordinary income recognized on a sale of the bond prior to maturity.

The itemized deduction for state income tax can be used against ordinary income that's taxed at 39.6 %, which means the effective rate of tax on the capital gain under the regular income tax could be about 16 % versus 27 % in the AMT calculation, producing a difference of eleven percentage points.

This amount is taxed as ordinary income under the regular income tax, producing a tax (at 35 %) of $ 22,750.

Even if your rental home is producing positive cash flow, depreciation and other expenses associated with homeownership can be deducted from ordinary taxable income.

A: No, it's all ordinary income, even if some or all of the income produced by your traditional IRA was from an increase in value of stocks or mutual funds.

«Business income» means gross receipts minus ordinary and necessary expenses required to produce income.

Rental income, which is gross receipts minus ordinary and necessary expenses required to produce the income.

D - epreciation: One of the cons of flipping is that it produces taxable income at ordinary rates whereas holding can allow you to have an income via positive cash flow and yet show a tax loss from depreciation.