ordinary income

Definition of "ordinary income"
  1. It refers to revenue that one generates from usual sources like remuneration, dividends, interest, or short-term profits from the sale of assets, and it does not include income made from selling capital assets or properties utilized in their profession
How to use "ordinary income" in a sentence
  1. A business's ordinary income will typically consist of its revenue from its main operations, minus any direct costs and expenses.
  2. John, an individual, earns ordinary income through his salary, interests from his savings, and dividends from his investments.
  3. Profits from the sale of newly developed software is considered as ordinary income for the software development company.

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