Ordinary Income Tax defined: Ordinary income tax is income received that is taxed at the highest rates, or ordinary income rates. Ordinary income is composed mainly of wages, salaries, commissions and interest income (as from bonds). Ordinary income can only be offset with standard tax deductions, while capital gains income can only be offset with capital losses.
Above is a definition for “Ordinary Income Tax” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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