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Introduction to Ordinary Income: Definition and Scope Ordinary income is any form of income that is subject to standard marginal tax rates as outlined by the Internal Revenue Service (IRS). This type of income is broad and encompasses various sources, including salaries, wages, tips, bonuses, commissions, rents, royalties, short-term capital
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Introduction to Investment Properties When it comes to real estate investing, the terms “primary residence,” “second home,” and “investment property” can sometimes be used interchangeably. However, they represent distinct concepts that significantly impact an investor’s financing, tax obligations, and potential returns. In this section, we will explore what investment properties
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What is Effective Gross Income (EGI)? Effective gross income, often denoted as EGI, represents the total potential rental income generated from a real estate investment property, inclusive of other sources and adjusted for vacancies and credit losses. This critical concept plays an indispensable role in determining the profitability and true
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