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Simple English definitions for legal terms
investment income
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A quick definition of investment income:
Investment income is money that you get from things like stocks, bonds, or real estate that you own. It's called "investment" income because you're making money from the things you've invested in. This is different from "earned" income, which is money you make from working a job. Investment income can be taxed, just like earned income, but there are different rules for how it's taxed.A more thorough explanation:
Investment income is money earned from investments, such as stocks, bonds, and real estate. It is a type of unearned income, which means it is not earned from working. Investment income can be received periodically or as a lump sum.
Examples:
- Dividend payments from stocks
- Interest earned on savings accounts or bonds
- Rental income from real estate properties
- Capital gains from selling investments for a profit
These examples illustrate how investment income is earned from investments rather than from working. It is important to note that investment income is subject to taxation, and the tax rate may vary depending on the type of investment and the length of time it was held.