ordinary income

noun

Legal Definition of ordinary income

: income that does not derive from the exchange or sale of capital assets or property used in one's trade or business and that for individuals includes compensation, interest, dividends, and short-term capital gains

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“Ordinary income.” The Merriam-Webster.com Legal Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/legal/ordinary%20income. Accessed 20 January 2020.

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