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| Definitions by InvestorWords.com |
| What is...? |
| ordinary income Ordinary income is any income you receive from regular business activities. Ordinary income doesn't include capital gains (the amount by which an asset's selling price exceeds its initial purchase price). It is important to distinguish between the two kinds of income for tax purposes, because capital gains are taxed at a rate different from the rate at which ordinary income is taxed. |
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