active income

active income definition - finance
Income that is actively earned such as a salary, hourly wages, fees, and commissions. For tax purposes, the Internal Revenue Service distinguishes between active income and passive income, such as income from real estate limited partnerships or other real estate activities that donÂ’t occupy more than 50 percent of a personÂ’s time.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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