Investment Income

The equity dividends, bond interest, and/or cash interest paid on an investment.

Investment income is contrasted with earned income. It includes returns on investments, rather than compensation for personal services. Common forms of investment income are dividends, interest, capital gains, rents, royalties, and distributive shares.

Investment income - sometimes called unearned income - is the money that you collect from your investments.

It may include stock dividends, mutual fund distributions, and interest from CDs, interest-bearing bank accounts, bonds, and other debt instruments. You may also have rental income from real estate or other assets you own for investment purposes.

Capital gains you realize from selling investments for more than you paid to acquire them may also be considered investment income. Your net investment income is what you have left over after you subtract your investment expenses, such as fees and commissions.

Includes taxable and tax-exempt interest, dividends, capital gains net income, certain rent and royalty income, and net passive activity income.

The income you get from an investment, like interest you get from a bank or dividends you get from a stock you own.