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Home> Income Tax Guide

Investment Income

Investment income is income from a portfolio of invested assets. It is sometimes called unearned income and 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.

People over the age of 50 today can expect to spend as many years in retirement as they did working. They will need a source of investment income that can keep pace with inflation over a 20, 30 or even 40 year time horizon.