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 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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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, 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 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.

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  • Passive investment income does not include royalties derived in the ordinary course of a trade or business of franchising or licensing property or active business computer software 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 – interest, dividends, rent, royalties, etc.

  • Passive investment income does not include interest on any obligation (1) acquired from the sale of property described in Internal Revenue Code Section 1221(a)(1) or (2) from the performance of services in the ordinary course of a trade or business of selling the property or performing the services.Accordingly, such interest is active trade or business income eligible for the reduced rate.

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

  • Passive investment income is gross receipts derived from royalties, rents, dividends, interest, annuities and sales or exchanges of stock or securities.Line (2a).


More Definitions of Passive investment income

Passive investment income means dividends, interest, or other gross income attributable to the ownership or disposition of qualified investment securities.
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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 re-
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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, 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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Related to Passive investment income

  • Investment Income means dividends, capital gains, or interest income 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.

  • Pre-Incentive Fee Net Investment Income means interest income, dividend income and any other income (including any other fees, other than fees for providing managerial assistance, such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under the administration agreement and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount debt instruments with payment-in-kind interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

  • 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

  • U.S. Investment Company Act means the United States Investment Company Act of 1940, as amended;

  • Multi-family housing means a building or structure that is designed to house two (2) or more different households in separate housing Units which have full kitchen facilities including oven/range, refrigerator, kitchen sink with hot and cold water supply and food storage facilities and at least one (1) full bathroom facility(s), one (1) full bedroom and one (1) living area (including a combination thereof such as studio arrangements).

  • 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.

  • Investment Company Act Event means that the Company shall have received an Opinion of Counsel to the effect that, as a result of the occurrence of a change in law or regulation or a written change in interpretation or application of law or regulation by any legislative body, court, governmental agency or regulatory authority, there is more than an insubstantial risk that the Securities Trust is or will be considered an "investment company" that is required to be registered under the Investment Company Act of 1940, as amended, which change becomes effective on or after the Original Issue Date.

  • Investment interest means investment interest as defined in section 163(d)(3) of the Internal Revenue Code.

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

  • Trust Income has the meaning set forth in the Trust Agreement.

  • Small Business Enterprise means a for profit small business concern that is at least fifty one percent (51%) owned by one (1) or more individual(s) who are economically disadvantaged. “Economically Disadvantaged Individual” is defined in Appendix B-1, Definitions, in Notice of Requirements for Small Business Enterprise (SBE) Program.

  • Prohibited Investment means Property (other than prescribed excluded Property as that term is defined in the Tax Act) that is:

  • Investment Company Client means any Investment Company (or series thereof ) as to which the Firm is an investment adviser or investment sub-adviser.

  • Investment Canada Act means the Investment Canada Act (Canada).

  • Foreign Investment means any investment made by a person resident outside India on a repatriable basis in capital instruments of an Indian company or to the capital of an LLP;

  • Benefit Plan Investor means an “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to Title I of ERISA, a “plan” as defined in and subject to Section 4975 of the Code or an entity whose underlying assets include plan assets of any of the foregoing.

  • Plan Assets Regulation means 29 C.F.R. Section 2510.3-101, et seq., as modified by Section 3(42) of ERISA.

  • Small Business Enterprise (SBE) means a business that is certified as an SBE under this program or the following similar programs and meeting the below economic thresholds (Section III “Economic Size Standards”).

  • covenant income means the gross income payable to a full-time student under a Deed of Covenant by his parent;

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