Nonbusiness Income

Nonbusiness Income may have one of the following meanings, depending the context of the term:

1. income from passive sources such as interest and dividends, along with nonbusiness capital gains in excess of nonbusiness capital losses. This concept is used to calculate the net operating loss deduction. Former Tax Regulation (check if this Reg. is current here) §1.172-3(c).

2. income from investment assets in a multistate corporation which is removed from the apportionment process and allocated to the state in which the nonbusiness asset is located.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.