All income other than capital gains is referred to as

Question

Quizplus · Accepted Answer

Capital gains refer specifically to the profit made from selling a capital asset (such as stocks or real estate). Therefore, all income that is not classified as capital gains would be considered ordinary income. Gross income includes capital gains, but it also includes other forms of income such as rental income, business income, and interest income. Earned income specifically refers to income that is earned through work (such as wages or salary), whereas personal income refers to all income received by an individual including gifts, inheritances, and government transfer payments.

All Income Other Than Capital Gains Is Referred to as