Passive investment income definition

Passive investment income means gross receipts derived from royalties, rents, dividends, interest, annuities, and sales and exchanges of stock or securities to the extent of any gains therefrom.
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Passive investment income means gross income by way of interest, dividends, royalty, rents or otherwise, where the derivation of that income is the natural consequence of holding the related asset, and not the result of significant personal effort for or on behalf of the holder;
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Passive investment income means dividends, interest, or other gross income attributable to the ownership or disposition of qualified investment securities.
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Examples of Passive investment income in a sentence

  • Passive investment income generally means gross receipts derived from royalties, rents, dividends, interest, annuities, and sales or exchanges of stock or securities (to the extent of gains).

  • Passive investment income does not include amounts included in the gross income of a patron of a cooperative (within the meaning of section 1381(a), without regard to paragraph (2) (A) or(C) of section 1381(a)) by reason of any payment or allocation to the patron based on patronage occurring in the case of a trade or business of the pa- tron.

  • Passive investment income generally does not include interest on accounts receivable, gross receipts that are derived directly from the active and regular conduct of a lending or finance business, gross receipts from certain liquidations, or gain or loss from any section 1256 contract (or related property) of an options or commodities dealer.

  • Passive investment income includes such things as dividends, interest, rents, royalties, and capital gains.

  • Passive investment income, including interest on the Bonds, may be subject to Federal income taxation under Section 1375 of the Code for a Subchapter S corporation that has Subchapter C corporation earnings and profits at the close of the taxable year if greater than 25% of the gross receipts of such Subchapter S corporation is passive investment income.

  • Passive investment income is defined for this purpose as under section 1362(d)(3)(D), relating to termination of an S corporation election.

  • Passive investment income is income such as interest, dividends, rents, and royalties.

  • Passive investment income does not include gross receipts that are directly derived in the ordinary course of a trade or business of: (1) lending or financing; (2) dealing in property; (3) purchasing or discounting accounts receivable, notes, or installment obligations; or (4) servicing mortgages.Accordingly, such gross receipts are active trade or business income eligible for the reduced rate.

  • Passive investment income, including interest on the 2015F Bonds, may be subject to federal income taxation for any Subchapter S corporation that has Subchapter C earnings and profits at the close of the taxable year, if greater than 25% of the gross receipts of such Subchapter S corporation is passive investment income.

  • Passive investment income may be excluded if the Taxpayer’s Business Activity is exempt from the Business Privilege Tax.


More Definitions of Passive investment income

Passive investment income means gross receipts from royalties, rents, dividends, interest (excluding installment sales to customers and income of lending and financing companies), annuities, and sales or exchanges of stock or securities to the extent of any gains therefrom.
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Passive investment income. ’ means gross receipts derived from royalties, rents, dividends, interest, annuities, and gains from the sale or exchange of stock or secu- rities. ‘‘Gross receipts’’ means the total amount received or accrued under the meth- od of accounting used by Client in computing its taxable income without reduction for returns and allowances, cost of goods sold, or deductions. Thus, to avoid the cor- porate-level tax and the revocation of its S election, Client’s income from royalties, rents, dividends, interest, annuities, and the sale of stock and securities must equal 25% or less of Client’s total gross receipts.
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Passive investment income means gross receipts derived from royalties, rents, dividends, interest (excluding interest on installment sales of inventory to customers and income of certain lending and financing businesses), annuities, and sales or exchanges of stock or securities to the extent of any gains. “Excess net passive income” is the amount that bears the same ratio to net passive income as the amount of passive investment income that exceeds 25 percent of gross receipts bears to passive investment income.
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Passive investment income means, with certain modifications, gross receipts derived from royalties, rents, dividends, interest, annuities, and sales or exchanges of stock or securities.
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Passive investment income means dividends, 38-41 interest, or other gross income attributable to the ownership or 38-42 disposition of qualified investment securities.
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Passive investment income means gross re-
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Related to Passive investment income

  • Investment Income means dividends, capital gains, or interest in- come generated from:

  • Exempt income means all of the following:

  • Veteran-owned Small Business Enterprise (VSBE) means A business that is verified by the Center for Verification and Evaluation (CVE) of the United States Department of Veterans Affairs as a veteran-owned small business. See Code of Maryland Regulations (COMAR) 21.11.13.

  • Median income means the median income by household size for the applicable housing region, as adopted annually by COAH or a successor entity approved by the Court.

  • Investment Company Act of 1940 means the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.

  • Per capita income means the average for the most recent three years for

  • Veteran-owned small business concern means a small business concern—

  • Women-owned small business concern means a small business concern-

  • Area Median Income means the most recent applicable county median family income published by the California Tax Credit Allocation Committee.

  • collective investment scheme means any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable Persons taking part in the arrangements (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income.

  • Investment Company Act means the Investment Company Act of 1940, as amended.

  • Small Business Enterprise means, as MCC 2-92-670 may be updated from time to time, a small business as defined by the U.S. Small Business Administration, pursuant to the business size standards found in 13 C.F.R. Part 121, relevant to the scope(s) of work the firm seeks to perform on city contracts. A firm is not an eligible small business enterprise in any city fiscal year in which its gross receipts, averaged over the firm's previous five fiscal years, exceed the size standards of 13 C.F.R. Part 121.